Thai share prices closed 0.44 percent lower on Friday amid growing political confusion after police foiled what they said was an attempt to assassinate Prime Minister Thaksin Shinawatra, dealers said.
They said fears over an economic slowdown in the United States also weakened sentiment on Thailand's exports, especially with the baht holding strong against the US dollar.
The Stock Exchange of Thailand (SET) composite index fell 3.04 points to 689.13 and the blue chip SET-50 index lost 2.64 points to 428.18. Gainers led losers 167 to 147 with 110 stocks unchanged, on turnover of 1.59 billion shares worth 9.00 billion baht (240 million dollars). Against the dollar, the Thai baht was unchanged at 37.64-66 after Thursday's 37.66-68. Against the euro, the Thai currency finished at 48.06-11 from 48.30-35.
"The market sentiment was mainly affected by confusion over the reported attempt to assassinate Thaksin. Market volume was very small with foreign investors not participating in trading," said Sukhbir Khanijoh, a stock analyst at Kasikorn Securities. Thai police found explosives in a car near Thaksin's house early Thursday but Thai media openly speculated that the incident might have been a political stunt.
The bomb was found as the campaigning period officially began for general elections on October 15, amid fears the polls could be delayed. "Meanwhile, investors worry about the US economic slowdown. Even though Thai exports are growing well, the strong baht against the dollar will hurt the net gain in our exports," Sukhbir said.
Thailand's top energy firm PTT lost 2.00 baht to 240.00 and its subsidiary PTT Exploration and Production slipped 1.00 to 110.00. The country's top lender Bangkok Bank gained 1.00 to 105.00 and the third-largest Kasikorn Bank was up 1.00 to 63.00. Thai Airways International edged up 0.50 to 41.50. Thailand's largest mobile operator, Advance Info Service plunged 3.50 to 86.50 while its parent Shin Corp lost 1.00 baht to 30.25.