Thai stocks closed slightly lower in thin trade on Monday amid worries a government decision to cut a petrol price subsidy would further pressure an economy that has grown slower than expected this year.
The benchmark Stock Exchange of Thailand (SET) composite index ended down 0.64 points, or 0.1 percent, at 625.83 points, and the big-cap SET50 fell 0.21 percent to 42.34 points.
Turnover rose to 15.4 billion baht ($379.6 million) from 11.3 billion baht on Friday, but was still thin, dealers said.
Analysts said signs of easing global oil prices helped support regional sentiment, but expectations of higher Thai retail petrol prices and disappointment over Thai economic data depressed many investors.
The Thai government, which has spent 12.6 billion baht over the last five months subsidising petrol prices, said on Monday it would allow retail petrol price to "get closer" to market prices.
"Other regional markets gained from falling oil prices, but ours did not benefit as much," said Piti Ketsiri, an analyst at BT Securities.
"Rising benzene prices in Thailand...would lead to higher production costs, so it is dim for our market," he said.
Analysts expect the Thai cabinet to raise its ceiling on retail petrol prices by 0.60-1.50 baht per litre on Tuesday. Investors were also downbeat because a state planning agency downgraded its economic growth forecast for the year to six percent from seven percent because of a slow first quarter.
Thailand's economy grew a slower-than-expected 0.8 percent in the first quarter, held back by rising global oil prices, a bird-flu epidemic and unrest in the country's Muslim south, the National Economic and Social Development Board said.
Shares in Bangkok First Investment and Trust, which is in the process of merging with a unit of merchant banking group Finansa to become a bank, rose 6.09 percent to 30.50 baht.
Shares in Book Club Finance and Siam Industrial Credit (SICCO) both climbed. Siam Commercial Bank is looking to sell its stakes in those firms.
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