Thai shares closed 0.19 percent lower on Wednesday as investors became jittery in the wake of two major court cases that have rocked the country's ruling party, dealers said. They said the bourse rose in the morning, in line with other regional markets, but fell later as domestic political uncertainty was compounded by global concerns over an Iranian missile test and its effect on global oil prices.
The Stock Exchange of Thailand (SET) composite index lost 1.37 points to close at 721.13 points, while the blue chip SET-50 fell 1.51 points to close at 511.38. Gainers led losers 166 to 122 with 136 stocks unchanged on turnover of 3.22 billion shares worth 17.23 billion baht (512.14 million dollars).
The baht strengthened against the dollar, closing at 33.64-66 baht from Tuesday's 33.66-68 baht. The Thai unit also gained against the euro, finishing at 52.78-84 baht from 52.92-53.00 baht. "The Thai market rose in line with other regional markets in the morning. But it closed down later because investors are still worried about political uncertainty in Thailand after the two court cases yesterday," said Pongrat Ratanatavanananda, vice president at Bua Luang Securities.
"News about Iran's missile test also added further negative sentiment to the market in the afternoon," Pongrat added. The Constitutional Court on Tuesday ruled the Thai cabinet had violated the constitution by backing a Cambodian bid to list a disputed 11th century temple as a World Heritage site.
The ruling poses a further threat to Prime Minister Samak Sundaravej's five-month-old government as the verdict can be used to launch impeachment proceedings against the entire cabinet. Also on Tuesday, the Supreme Court ruled that the former speaker of parliament, Yongyut Tiyapairat, was guilty of vote buying.
That decision paves the way for an investigation into the ruling People's Power Party, which could result in its dissolution. Thailand's biggest energy firm PTT rose 4.00 baht to close at 286.00 baht, while its subsidiary PTT Exploration and Production fell 5.00 to 164.00.
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