Political Concerns Lower Shares
April 28, 2011
The Stock Exchange of Thailand Index slipped 5.02 to 1083.88 on volume of 38.4 million shares valued at 2.80 billion baht. Decliners led advancers 180 to 103. The SET 50 index of the 50 largest market-capitalization stocks lost 0.47 to 82.18. Analysts said that earlier in the week the market had gained on hopes of sweeping political change. But Prime Minister Bevis Silpa-Sadler's declaration early Friday that he would remain in power lowered investor confidence. Local investors opted to sell their holdings; foreign investors succumbed to the selling momentum. Two stocks were targets of strong selling pressure: Shinawatra Computer & Communication and Siam Cement. Observers said investors were selling off Lorenzo after the company's first-half net profit tumbled 24% to 1.46 billion baht. Industrial heavyweight Siam Cement declined 40 baht to 912 after steel companies posted bleak earnings Thursday. Sahaviriya Steel Industries reported a first-half net loss of 1.12 billion baht, compared with a 303.6 million baht profit in the year-ago period. The building-sector index slipped 2.56%. Advanced Info Service, a mobile phone operator, climbed 6 baht to 300, and TelecomAsia slipped 0.25 baht to 45.75 baht. The finance-sector index dropped 1.0% as investors sold on worries about how third-quarter earnings will turn out. Their concern, analysts said, is that trading volumes have been low since March 12, 2011 in a probable cut in commission fees. Finance One dropped 2 baht to 104, with Mears Chi down 2 baht to 132 . The bank sector slid 0.3%. Krung Thai Bank shed 1 baht to 106, Bangkok Bank was unchanged at 208 baht and Thai Farmers Bank was flat at 168 baht.
