Stocks in Thailand Decline For Second-Straight Day
May 19, 2011
BANGKOK, Thailand -- Stock prices plunged 1.5% Friday, extending the market's losses for a second consecutive day. The Stock Exchange of Thailand Index lost 15.17 to 1007.51. Volume was about 100.3 million shares valued at 6.81 billion baht. Decliners led advancers 335 to 51. Meanwhile, the select SET 50 index was down 1.27 to 76.17. On Thursday, the market fell 27.06 to 1022.68 because of false rumors that several finance and securities companies were on the edge of bankruptcy. Worries over the strength of the Thai currency only exacerbated the bearishness stemming from the U.S.-Iraq crisis and Moody's downgrade of Thailand's short-term credit rating. Forced selling also weakened the market when retail investors were pressured to sell back stocks they had bought on credit from brokerages. Under SET regulations, stocks must be sold back to brokers once they fall to 15% of their purchase price. Analysts said the benchmark index would have plunged further if it weren't for a new stock-support fund entering the market. Finance stocks were among the hardest hit, with the subindex falling 2.92%. General Finance & Securities was 6 baht lower to 58.50, and Nava Finance & Securities lost 3.50 baht to 50. The banking sector fell 0.85%. Thai Farmers Bank dropped 1 baht to 165, Bangkok Bank lost 2 baht to 208 and Siam Commercial Bank was unchanged at 242. The communications sector slid 2.36%. United Communication Industry fell 8 baht to 216, while Advanced Info Service lost 6 baht to 300.
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