Thai shares closed 1.42 percent lower on Tuesday as analysts said North Korea's nuclear test had frightened off some regional investors. They said news a day earlier that Thailand's economy had officially entered recession amid fractious ties among the ruling coalition parties had also affected the bourse.
The Stock Exchange of Thailand (SET) composite index fell 7.82 points to close at 542.69 points while the blue chip SET-50 index was down 5.94 points to 384.77. Losers outnumbered gainers 240 to 92 while 114 stocks were unchanged on turnover of 3.9 billion shares worth 15.2 billion baht (439.5 million dollars). The baht weakened against the dollar to close at 34.46-48 to one dollar compared to Monday's close of 34.36-38.
But the Thai unit gained against the euro to close at 47.83-92 compared to 47.99-48.04 the previous day. Kosin Sripaiboon, chief analyst at UOB Kay Hian Securities, said investors were concerned about regional tensions following North Korea's nuclear test.
He also said Thai premier Abhisit Vejjajiva's decision not to reshuffle his cabinet despite pressure from coalition partners and members of his own party had exacerbated domestic political tensions. On Monday government figures showed Thailand's economy officially entered recession with a second consecutive quarter of contraction. Gross domestic product (GDP) fell 7.1 percent in the first three months of 2009.
"Investors are also concerned that growth in the second quarter will be little improved, which will affect the estimated GDP for the year," Kosin said. Energy giant PTT Plc was down 2.00 baht to 210.00 baht, while its subsidiary PTT Exploration and Production lost 3.00 to close at 120.50. Coal producer Banpu fell 5.00 to 304.00. Bangkok bank was down 2.50 to 87.25 and Kasikornbank slipped 0.75 to 56.00.
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