Thai share prices closed 0.66 percent lower on Friday, hit by US Federal Reserve chairman Ben Bernanke's comments forecasting "a period of sluggish growth" in the US economy, dealers said. They said sentiment was downbeat due to sustained fears over a US recession and a mixed regional market.
The Stock Exchange of Thailand (SET) composite index fell 5.46 points to 826.65 and the blue chip SET-50 lost 3.23 points to 598.05. Losers outnumbered gainers 237 to 86, with 114 stocks unchanged on turnover of 3.68 billion shares worth 21.93 billion baht (664.60 million dollars).
The Thai baht closed at a new 10-year high of 32.52-54 against the dollar, up from Thursday's 32.77-88. Against the euro, the Thai unit was quoted at 47.75-78 from 47.89-94. "The Thai market was affected" by the Fed chairman's comments, said Kavee Chukitkasem, assistant managing director at Kasikorn Securities. Speaking to a US Senate panel on Thursday, Bernanke said he expects "a period of sluggish growth" in the world's largest economy and hinted more rate cuts aimed at averting a downturn.
His remarks pressured Wall Street and left regional markets mixed. Apart from the US factor, investors remained jittery over the fate of Thailand's capital controls aimed at halting the baht's rapid rise against the dollar.
The Thai baht continued to extend its gains to new 10-year highs against the dollar on growing speculation that the country's new government would soon lift the currency measures.
Thailand's biggest energy firm PTT fell 4.00 baht to 328.00, but its subsidiary PTT Exploration and Production rose 1.00 to 154.00. Major energy firm Banpu gained 8.00 to 480.00. Thailand's largest lender Bangkok Bank was unchanged at 125.00, and the kingdom's biggest mobile phone operator, Advanced Info Service, fell 4.00 at 101.00. Shares in Thai Airways International edged down 1.00 at 32.50.
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