Thai share prices closed flat on Wednesday as concerns over China's economy overheating and the abrupt resignation of Japan's prime minister pressured the market, dealers said. They said the market also moved on profit taking in energy-linked shares but a majority of investors stayed out of the market amid caution over potential changes in the regional economy.
The Stock Exchange of Thailand (SET) composite index gained 0.46 points, or 0.06 percent, to 802.00 and the blue chip SET 50 index edged up 0.09 points to 578.28. Losers outnumbered gainers 161 to 132, with 137 stocks unchanged on turnover of 1.2 billion shares worth 8.88 billion baht (259 million dollars).
The Thai baht held steady to the dollar, closing at 34.24-26 to the unit. Against the euro, the Thai currency was quoted at 47.46-49 from Tuesday's 47.20-35. "The latest high inflation report in China raised concerns that the mainland government will come up with measures to slow down the Chinese economy," said Adisak Kammool, a senior market analyst at KGI Securities.
Investors expected the Chinese government would soon raise interest rates after inflation hit 6.5 percent in August. Adisak said the market, meanwhile, was surprised by the resignation of Prime Minister Shinzo Abe earlier in the day, prompting investors to expect further economic reforms in Japan.
"The Thai market was under pressure from the regional uncertainties, with investors adopting a wait-and-see stance to check whether likely economic reforms in Japan and China would affect regional economy or not," Adisak said.
Thailand's top energy firm PTT closed flat at 314.00, and its unit PTT Exploration and Production was unchanged at 4.00 to 125.00. Top lender Bangkok Bank also held firm at 114.00. Flag carrier Thai Airways International was steady at 41.75, while the nation's biggest mobile phone operator Advanced Info Service rose 1.00 to 89.00.
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