Thai share prices closed 0.28 percent lower Thursday on selling of export-linked stocks as the local currency hit a fresh 10-year high against the dollar, dealers said. They said investors also dumped banking and energy shares.
The Stock Exchange of Thailand (SET) composite index fell 2.41 points to 843.87 points and the blue chip SET 50 lost 2.32 points to 603.96. Losers outnumbered gainers 264 to 118, with 91 stocks unchanged on turnover of 5.52 billion shares worth 31.3 billion baht (939 million dollars).
The Thai baht edged to a new 10-year high against the dollar, finishing at 33.31-34 to the greenback from Wednesday's close of 33.33-34. Against the euro, the local currency was quoted at 45.83-46.07 from 45.81-89. "Despite gains in the regional market, the Thai market was under pressure due to the strong baht," said Chai Chirasevenupraphand, a market strategist at Capital Nomura Securities.
"Foreign and institutional investors sold export-linked shares," Chai said.
The strong baht makes Thai exports less competitive abroad and cuts the value of domestic firms' repatriated profits. Exports account for 60 percent of the Thai economy.
On Thursday, Finance Minister Chalongphob Sussangkarn held talks with Bank of Thailand governor Tarisa Watanagase over the baht's surge against the dollar. But no new measures to curb the baht's rise were announced following the meeting.
The central bank in December imposed currency controls to halt the rise in the baht, which had gained about 12 percent against the US unit last year. Thailand's top energy firm PTT fell 4.00 baht to 298.00 while its unit PTT Exploration and Production was flat at 123.00. The top lender Bangkok Bank lost 2.00 to 129.00, and third largest Kasikorn Bank also shed 2.00 to 83.00. Thai Airways International rose 0.75 to 44.00, and the largest mobile phone operator Advanced Info Service gained 1.00 to 94.00.
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