Thai share prices closed 0.35 percent lower on Thursday after the government ordered a broadcaster under control of Singapore's Temasek to pay large penalties over a concession dispute, dealers said. They said the market was also downbeat as investors sold export-linked shares as the Thai baht continued to rise against the dollar.
The Stock Exchange of Thailand (SET) composite index fell 2.58 points to 732.40 and the blue chip SET 50 index shed 0.15 points to 513.41. Losers far outnumbered gainers 300 to 69, with 99 stocks unchanged on turnover of 2.46 billion shares worth 13.56 billion baht (381 million dollars). The Thai baht rose to a nine-year high of 35.20-22 to the dollar, compared with Wednesday's 35.24-26, and finished at 46.46-70 the euro from 46.75-78.
The strong baht makes Thai exports less competitive in overseas markets and lowers the value of companies' repatriated profits. "iTV's case alarmed investors as they were worried over government policies. Investors wondered what would happen next," said Ronnakit Sarinwong, vice president of Adkinson Securities.
The post-coup government Thursday ordered the broadcaster once linked to ousted premier Thaksin Shinawtra and under control of Singapore's Temasek to pay 100 billion baht (2.8 billion dollars) in penalties and concession fees. The broadcaster lost its final legal appeal over a concession fee dispute with the government on Wednesday.
Ronnakit also said investors sold export-linked shares as the local currency continued to rise against the greenback. Thailand's largest energy firm PTT was unchanged at 224.00 while its subsidiary PTT Exploration and Production edged down 1.00 baht to 102.00.
Top lender Bangkok Bank was also flat at 124.00, and the third-largest bank Kasikorn Bank slipped 1.50 to 70.50. Flag carrier Thai Airways International added 0.75 to 45.20 and Thailand's biggest mobile phone operator, Advanced Info Service, gained 1.50 to 85.50. Shares of iTV nose-dived 0.63 or 30 percent to close at just 1.47.
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