Thai share prices closed 2.38 percent lower on Thursday as investors dumped shares after French banking giant BNP Paribas suspended funds due to woes in the US sub-prime mortgage market, dealers said. They said selling accelerated on expectations that Wall Street would fall sharply Thursday on the Paribas factor.
The Stock Exchange of Thailand (SET) composite index dropped 19.81 points to 811.83 and the blue chip SET 50 index lost 15.59 points to 579.63. Losers far outnumbered gainers 317 to 71, with 63 stocks unchanged on turnover of 3.5 billion shares worth 21.4 billion baht (630 million dollars).
The Thai baht changed little from Wednesday, closing at 34.00-03 to the dollar. Against the euro, the Thai currency was quoted at 46.80-86 from 46.70-80. The market closed higher in the morning session, but "as soon as the Paribas news hit the market, investors started selling," said Chai Chirasevenupraphand, a market strategist at Capital Nomura Securities.
"The news dampened sentiment, and selling also accelerated as investors already expected selling in the US market" Thursday due to the Paribas factor, Chai said. BNP Paribas said on Thursday it has suspended its three funds due to problems in the US sub-prime mortgage sector. Sub-prime loans are given to a borrower with a weak credit history. Mortgages and home equity loans are common examples of sub-prime loans.
Thailand's top energy firm PTT dropped 10.00 baht to 294.00 and its unit PTT Exploration and Production fell 5.00 to 117.00. Top lender Bangkok Bank lost 4.00 to 119.00. Thai Airways International edged down 1.25 to 45.00, while the kingdom's largest mobile phone operator Advanced Info Service declined 3.00 to 97.00.