Thai share prices closed 0.40 percent lower on Wednesday on profit-taking in the rate-sensitive banking sector following the US Federal Reserve's decision to halt its long rate hike cycle, dealers said.
They said buying sentiment was sluggish as investors continued to speculate over future rate hikes despite the US central bank's decision Tuesday to keep key interest rates unchanged at 5.25 percent. The Stock Exchange of Thailand (SET) composite index fell 2.87 points to 708.93 and the blue chip SET-50 index lost 3.23 points to 496.90.
Gainers led losers 162 to 149 with 118 stocks unchanged on turnover of 3.4 billion shares worth 15.8 billion baht (421 million dollars). The Thai baht on Wednesday closed at 37.57-62 to the dollar, slightly up from Tuesday's 37.67-73. Against the euro, the Thai currency was unchanged at 48.25-55. "Although the Fed's move was in line with market expectations, investors sold stocks due to sustained speculation over more rate hikes," said Thanomsak Saharatchai, a senior market analyst at Capital Nomura Securities.
On Tuesday, the Federal Reserve kept its interest rates steady at 5.25 percent for the first time since June 2004, but many economists believed the pause could be short-lived.
Investors also traded with caution ahead of the release of earning results from major Thai firms including Thailand's top energy firm PTT and the country's top mobile operator, Advanced Info Service (AIS), later this week. PTT fell 2.00 baht to 248.00 and its subsidiary PTT Exploration and Production lost 1.00 to 123.00.
The country's top lender Bangkok Bank was unchanged at 107.00 and the third-largest Kasikorn Bank was also flat at 62.50. But the overall banking sector fell nearly 1.00 percent to 254.02.
Thai Airways International fell 1.25 to 40.00.