January 28, 2008
BANGKOK (AFP) - Thai share prices closed 2.02 percent lower on Monday amid ongoing concerns over a possible recession in the United States due to the subprime mortgage crisis, dealers said.
They said Thailand’s stock market was affected by the same negative sentiment that hit regional markets including Japan and Hong Hong.
The election of Thailand's new prime minister added some positive sentiment, but the much-anticipated choice of People Power Party leader Samak Sundaravej had already been priced into the market, they said.
The Stock Exchange of Thailand (SET) composite index fell 15.36 points to 744.36 and the blue-chip SET-50 lost 13.78 points to 533.59.
Losers outnumbered gainers 239 to 87, with 97 stocks unchanged on turnover of 1.31 billion shares worth 13.88 billion baht (420.78 million dollars).
The Thai baht closed at 33.05-06 against the dollar, little changed from Friday's 33.06-08. Against the euro, the Thai unit was quoted at 48.59-66 from 48.71-73.
"The market fell at the opening and continued to fall until the close. The main reason remains that investors are worried about a slowdown of the US economy due to the subprime mortage crisis," said Chai Chirasevenupraphand, market strategist of Captital Nomura Securities.
The Thai market fell in line with other markets in the region and around the world as investors had little enthusiasm over the US stimulus package aimed at boosting the world's largest economy wracked by ongoing housing sector turmoil.
Chai said that progress in Thailand's domestic politics with the election of Samak as prime minister had little effect on investors.
Thailand's biggest energy firm PTT lost 10.00 baht to 304.00 and its subsidiary PTT Exploration and Production lost 4.00 to 135.00.
Thailand's largest lender Bangkok Bank also fell 4.00 to 108.00 and the kingdom's biggest mobile phone operator, Advanced Info Service, lost 0.50 at 94.00.
Shares in Thai Airways International lost 1.50 to 31.00.
