January 22, 2008
BANGKOK - Thai share prices closed 3.26 percent lower Tuesday as investors panicked over worldwide market tumbles caused by rising fears of a recession in the United States, dealers said.
They said global factors were the key driver in the Thai market, overshadowing domestic issues such as the formation of a new government.
The Stock Exchange of Thailand (SET) composite index fell 24.99 points to 741.54 and the blue-chip SET-50 lost 19.40 points to 531.45.
Losers outnumbered gainers 381 to 35 with 46 stocks unchanged on turnover of 2.17 billion shares worth 24.25 billion baht (734.81 million dollars).
The Thai baht traded at 33.18-19 against the dollar, compared to Monday's close of 33.12-13. The Thai unit rose against the euro, closing at 47.94-48.00 from 47.99-48.04.
"The Thai market has been in-line with other stock markets worldwide since Monday," said Pichai Lertsupongkit, marketing director Thanachart Securities.
"The main factor is, apparently, fears over a recession of the US economy. Investors panicked and many felt insecure so they hurried to sell their shares, even at low prices," he said.
"They want to shift their investments from risky assets like stocks to more secure assets like bonds or cash," he said.
Pichai said movement toward installing an elected government in Thailand had done little to ease concerns among investors.
The People Power Party (PPP), which is aligned with ousted prime minister Thaksin Shinawatra, announced that it would nominate its leader Samak Sundaravej as prime minister.
Parliament, which opened on Monday for the first time since the elections last month, is expected to vote on the prime minister on Friday.
Hoping to ease investor fears, PPP announced that one of its first actions would be to implement an economic stimulus plan.
Surapong Suebwonglee, widely tipped as the next finance minister, said political stability would help restore investor and consumer confidence.
"The most urgent task is to build confidence for local and overseas investors," Surapong told reporters.
Among bluechips, PTT lost 4.00 baht to 292.00, while its subsidiary PTT Exploration and Production lost 8.00 to finish at 136.00.
Thailand's largest lender Bangkok Bank fell 3.00 to 107.00 and Advanced Info Service shares lost 3.50 to close at 90.00.
