Thai share prices closed 2.26 percent lower on Wednesday amid worries over political tensions between the country's junta and deposed premier Thaksin Shinawatra, dealers said. They said sentiment was also downbeat due to mostly sluggish regional markets. Which followed a slump on Wall Street as traders remained jittery over the prospect of higher US interest rates.
The Stock Exchange of Thailand (SET) composite index dropped 16.82 points, the biggest one-day selloff since early January, to 726.60, while the blue chip SET 50 index lost 13.20 points to 513.30.
Losers far outnumbered gainers 343 to 32, with 86 stocks unchanged on turnover of 2.6 billion shares worth 16.2 billion baht (468 million dollars). The Thai baht closed at 34.62-64 to the dollar, slightly down from Tuesday's 34.59-60. Against the euro, the Thai currency finished at 45.96-46.00 from 46.13-18.
"Selling spread across the board as investors were worried over political tensions between Thaksin and the government," said Kanang Duangmanee, an economist at Kasikorn Research Center.
The army-backed government, which came to power following last year's coup ousting Thaksin, has faced daily protests drawing thousands of people to the streets to demand that the generals step down. Anti-junta rallies have been organised by Thaksin's allies, who vow to stage demonstrations every day until a major protest on June 24.
The movement gained momentum as a powerful anti-corruption team set up by the military on Monday ordered a freeze on at least 52.9 billion baht (1.52 billion dollars) belonging to Thaksin and his family.
Kanang said investors were worried that the junta's asset freeze could anger Thaksin's supporters, and ongoing demonstrations could turn violent. On Tuesday, the junta gave Thaksin the green light to return home for the first time since the coup in September 2006 and fight to regain his frozen assets.
Thailand's top energy firm PTT dropped 10.00 baht to 248.00 and its unit PTT Exploration and Production lost 3.00 to 102.00. The kingdom's top lender Bangkok Bank fell 1.00 to 112.00, and the third largest lender Kasikorn Bank shed 2.00 to 67.50. Thai Airways International declined 1.00 to 42.00. Thailand's largest mobile phone operator, Advanced Info Service (AIS), lost 4.00 to 82.00.