January 15, 2008
BANGKOK - Thai share prices closed 1.46 percent lower on Tuesday, led by falls in the energy sector, amid ongoing fears over a possible slowdown in the US economy due to the subprime mortgage crisis, dealers said.
They said investors were also keeping a cautious eye on efforts to form a new government in Thailand, with the Supreme Court set to rule Friday on a legal challenge to last month's general elections, according to AFP.
The Stock Exchange of Thailand (SET) composite index fell 11.55 points to 779.60 and the blue-chip SET-50 lost 10.10 points to 562.95.
Losers outnumbered gainers 250 to 93, with 96 stocks unchanged on turnover of 1.59 billion shares worth 13.96 billion baht (421.75 million dollars).
The Thai baht remained unchanged at 33.13-15 against the dollar, compared to its close Monday. Against the euro, the Thai unit was quoted at 49.17-19 from 49.32-34.
"The market was up a little when the market opened today. But, later it kept going down, like other regional markets. The major factor is that investors are still worried over a slump in the US economy," said Chai Chirasevenupraphand, market strategist of Capital Nomura Securities.
He said the four biggest losers were in the energy sector.
Apart from fears over the US economy, political uncertainty in Thailand continued to affect the domestic market as investors wait to see what the new government will look like, three weeks after the general elections.
"Investors are cautious and want to see a more certain direction in Thai politics -- especially a new government -- but so far that remains unclear," Chai said.
The People Power Party, which was set up by allies of deposed premier Thaksin Shinawatra, won nearly half of the 480 seats in parliament in the December 23 polls, the first election since last year's coup ousting Thaksin.
But the Election Commission appointed by the military has opened dozens of vote fraud investigations that threaten the party's ability to form a coalition government.
Other complaints against PPP have been sent to the Supreme Court, which has been asked to invalidate the election results. The court is set to rule on two complaints against the PPP on Friday.
Thailand's biggest energy firm PTT lost 12.00 baht to 308.00, and its subsidiary PTT Exploration and Production fell 2.00 to 151.00. Energy firm Banpu fell 14.00 to 378.00.
The kingdom's top lender Bangkok Bank lost 1.00 to 112.00.
Thai Airways International slipped 0.75 at 32.25, and Thailand's biggest mobile phone operator, Advanced Info Service, lost 1.00 to 97.50.
