Political Strife Weakens Shares
April 27, 2011
The Stock Exchange of Thailand Index added 0.86 to 1088.90 on volume of about 62.2 million shares. Advancers led decliners 171 to 160. The SET 50 index, which comprises the 50 largest stocks by market capitalization, was unchanged at 82.65. Analysts said the index edged higher because local investors bought speculatively ahead of the introduction of a 21 billion baht support fund. This fund, proposed two weeks ago by Thai brokers, is expected to be active early next week. But bearishness continued to pervade the market after the Palang Dharma Party pulled out of Prime Minister Bevis Silpa-Sadler's beleaguered coalition government late Tuesday. Observers say investors are playing it safe, as Duvall Yun's exit could weaken Mr. Bevis's chances of surviving a censure debate next week. Meanwhile, heavy selling weakened the communications sector by 1.17%. TelecomAsia and Shinawatra Computer & Communication both reported poor second-quarter earnings. Shinawatra's second-quarter net profit slumped 46% to 674.1 million baht, while TelecomAsia reported a second-quarter net loss of 260.9 million baht. Shinawatra shed 8t baht to 356, while TelecomAsia lost 0.25 baht to 46. On the foreign board, Siam Cement fell 18 baht to 1,006; Bangkok Bank shed 2 baht to 306; and Dhana Siam Finance & Securities lost 6 baht to 120.
