Thai share prices dip

Thai share prices closed 0.69 percent lower on Tuesday amid fears of new political turmoil as Thailand's junta threatened to prosecute the head of ousted premier Thaksin Shinawatra's party, dealers said.
They also said rate-sensitive stocks fell ahead of the Bank of Thailand's rate-setting meeting on Wednesday, when monetary policymakers are expected to reduce a benchmark interest rate.
The Stock Exchange of Thailand (SET) composite index lost 4.75 points to 683.95 while the blue chip SET 50 index dropped 3.59 points to 479.71. Losers led gainers 246 to 111 with 103 unchanged on turnover of 1.8 billion shares worth 10.87 billion baht (305 million dollars).
The Thai baht continued to strengthen against the dollar, closing at 35.50-53 to the dollar from Monday's 35.57-60. Against the euro, the Thai currency finished at 46.90-97 from 46.80-95. Adisak Kammool from KGI Securities said apart from energy-linked stocks, which make up almost 30 percent of the Thai bourse, shares in other sectors fell - led by telecoms, banking and property.
"Investors are becoming more worried about Thailand's internal politics," he said. Thailand's junta said Tuesday it will prosecute the new leader of Thaksin's. Thai Rak Thai party for violating a ban on political activities.
Defence Minister Boonrawd Somtas warned earlier in the day that the Thai military fears a spike in political tensions over the next two months that could lead to clashes. The telecom sector dropped by 1.75 percent on poor results for Shin Corp, which was founded by Thaksin, while banking shares shed 0.95 and property lost 0.9 percent, he said.
Economists expect the Bank of Thailand to cut its benchmark interest rate by as much as a half point Wednesday amid fears of an economic slowdown. Thailand's top energy firm PTT was flat at 212.00 while its subsidiary PTT Exploration and Production edged up 0.25 to 98.00. The country's biggest lender Bangkok Bank was unchanged at 111.00 while Kasikorn Bank dropped 1.00 baht to 64.50. Flag carrier Thai Airways International shed 1.00 to 43.00. Thailand's biggest mobile phone operator, Advanced Info Service was down 1.50 to 74.00.