Banking analysts believe the big-lot sale was due to foreign investors' fear of the possibility that the bank may set aside more loan-loss reserves in the current quarter.

KTB's stock price on the main board closed at Bt13 yesterday, down 0.76 per cent, after the stock rose to its year-to-date high of Bt13.20 on Wednesday. The stock of the largest state-owned bank was sold yesterday via a big lot on the foreign board for as much as Bt649 million. Unlike other large banks, KTB's share price movement on the main board has been very close to the foreign board. Other large banks' prices are mostly much higher on the foreign board. KTB's shares on the foreign board closed unchanged at Bt13.

A Kim Eng Securities (Thailand) analyst said the big lot was caused by foreign investors' concerns that the bank is likely to allocate more provisioning this quarter. In addition, compared to the book value of other large banks, KTB stock is less attractive. He recommended investors sell for profit as the price has already peaked. Fundamentally, a suitable price should be Bt12.80, which is lower than the market price.