Thai share prices closed 1.96 percent lower on Tuesday as investors dumped stocks amid sustained fears over a further hike in US interest rates, dealers said. They said the market was also downbeat as investors were worried about a slump in the US economy due to higher interest rates.
The Stock Exchange of Thailand (SET) composite index dropped 12.90 points to 646.78, while the blue chip SET 50 index fell 9.50 points to 446.06. Losers far outnumbered gainers 287 to 44 and 80 stocks were unchanged with 1.1 billion shares worth 8.8 billion baht (228 million dollars) traded.
The Thai baht on Tuesday closed at 38.33-35 to the dollar, compared with Monday's close of 38.45-50. Against the euro, the Thai currency closed at 48.15-19 from 48.40-50.
"Fears over rising US interest rates continued to pressure the market," said Thanomsak Saharatchai, a senior market analyst at Capital Nomura Securities. As investors braced for rate hikes to 5.25 percent later this month, they now speculated whether the Fed would spike interest rates again in August, Thanomsak said.
"Investors were also worried about a slowdown in the US economy. If the US economy weakened, it would affect Thai exports," he said. Exports are the backbone of Thailand's economy as it accounts for 60 percent of the country's gross domestic product (GDP). Shares in Thailand's top energy firm PTT dropped 6.00 to 210.00 baht and its subsidiary PTT Exploration and Production lost 3.00 to 99.00.
Thailand's top lender Bangkok Bank fell 1.50 to 96.50, and Kasikorn Bank, the third-largest bank, also slipped 1.50 to 55.00. Shares in major broadcaster iTV declined 0.30 or 10.7 percent to 2.50 as the government demanded iTV pay 1.98 billion dollars in past concession fees. Thai Airways International edged up 0.50 to 40.00.
Comments
Comments are closed.