Thai share prices closed 1.23 percent lower on Tuesday amid a lack of foreign investors, while local investors switched their money into bond markets, dealers said. They said higher yields on bonds coupled with weaker earnings from the current reporting season had prompted the switch.
The Stock Exchange of Thailand (SET) composite dropped 8.34 points to 667.18 points and the blue chip SET 50 index fell 7.23 points to 470.25.
Losers outnumbered gainers 191 to 121 and 83 stocks were unchanged with sluggish turnover of 1.9 billion shares worth 12.8 billion baht (310.75 million dollars) traded.
Thai baht closed its onshore trading on Tuesday at 41.16-19 baht to one dollar compared to previous day's close of 41.02-05.
Thai unit closed against the euro at 50.70-75 to one compared to Monday's close of 50.71-80.
"The Thai market which drastically dropped in the past two days could be attributed to the fundamental factor that investors switched their investments into the bond market as its yield was close to 5 percent," Phadoempob Songkroh of Bualung Securities said.
Another factor was overseas investors reducing their purchases in the Thai market and other Asian markets, and earnings - particularly of large market capitalisation stocks - that were lower than analysts expected.
Phadoempob added that in a technical slide the index could not sustain the 678-point mark, thus triggering more sell offs.
The energy sector plunged 2.17 percent, followed by communication sector which dropped 1.30 percent and banking fell 0.90 percent.
Bangkok Bank shed 1.00 to 97.50 baht, Kasikornbank dropped 0.50 to 57.00 as did Siam Commercial Bank to 49.00. Kim Eng Securities was off 0.40 to 21.30.
PTT Plc plunged 8.00 baht to 230.00 as did its subsidiary PTT Exploration and Production to 420.00 baht.
Siam Cement was unchanged on 220.00.
Thai Airways International gained 0.50 to 36.25 but Advanced Info Service dropped 2.00 to 103.00 and United Communication fell 0.75 to 47.75 baht.