Thai stocks extend losses, touch five-month low

Thai stocks fell to a new five-month low on Thursday, again weighed down by investor concerns over the economic impact of violence in the country's mainly Muslim south and fears China will act to slow its economy.
Falling for the fifth consecutive trading day, the benchmark Stock Exchange of Thailand (SET) closed down 10.09 points, or 1.57 percent, at 634.01 points. It touched 632.40 points in afternoon trade, its lowest since November 27, 2003.
The big-cap SET 50 index ended 1.29 percent lower at 42.84 points.
Turnover rose to 15.5 billion baht ($389.9 million) from 11.6 billion baht on Tuesday, but was still lower than the first-quarter average of 28 billion baht. The market was closed on Wednesday for a public holiday.
"The three main factors are the south, China and interest rates," said KGI Securities Rakpong Chaisuparakul.
"The market lacks positive factors to give investors confidence. It will probably trade sideways for a while."
Prime Minister Thaksin Shinawatra began a three-day visit to the Muslim south on Thursday after more than 100 people were killed in a series of clashes last week that culminated in a shoot-out at a mosque in Pattani province.
The violence has cast a shadow over tourism in the country, Southeast Asia's top holiday destination, which draws more than 10 million visitors annually.
Tourism generates about six percent of Thailand's gross domestic product (GDP).
The direction of US interest rates is also keeping local investors wary after the US Federal Reserve hinted this week that a rate hike was on the horizon.
Another worry is China, where Premier Wen Jiabao said last week his country needed to take "forceful" measures to cool its red-hot economy.
Shares in Adkinson Securities fell 12.9 percent to 8.10 baht after the brokerage reported a surprise first-quarter loss of 47 million baht.
China has now confirmed nine cases of severe acute respiratory syndrome (SARS) in its latest outbreak, with hundreds of people isolated for observation.
Shipping stocks, already hit hard last week after Wen's comments, continued to decline, with the top two firms, Precious Shipping and Thoresen Thai Agencies, both sharply down.