Jitters lead to sales of Thai stocks

The SET Index fell 23.43 points to 810.22 on moderate volume. Analysts said the index might fall below 800 today.

"Negative cues are everywhere and there's no sign of it ending yet," said BFIT Securities strategist Aphisit Limsupanark.

Energy conglomerate PTT ended down 4.2 per cent at Bt322 and PTT Exploration and Production was down 3.7 per cent at Bt180. Thai Oil fell 7 per cent to Bt59.50, Bangkok Bank was down 3.8 per cent at Bt128 and Kasikornbank was down 4.7 per cent at Bt81.

Foreigners were net sellers to the tune of Bt2.48 billion. Over the past six trading days, the SET has fallen by a combined 60 points, with a net sell-off by foreigners of more than Bt15 billion.

Jitters over the Thai political situation have led foreigners to dump stocks.

Samak held a meeting yesterday with Army chief Anupong Paochinda, national police chief Patcharawat Wongsuwan and Council of State secretary-general Pornthip Jala over the People's Alliance for Democracy (PAD) demonstrations.

Samak ordered Anupong and Patcharawat to negotiate with the PAD's leaders on moving the rally Makhawal Bridge, near Government House, because of traffic chaos.

They all agreed not to use force to disperse the rally.

Marco Sucharitkul, president of JPMorgan Securities Thailand, said fund managers had been selling Thai stocks since last week because of political uncertainty.

"There has been talk about a coup. But in their eyes, the government is more interested in tackling political problems than focusing on the economic situation," he said.

Investors were worried about government's intervention to force oil companies to subsidise domestic oil prices.

Kasem Prunratanamala, head of research at CIMB-GK Securities (Thailand), said investors were being very negative about the Thai market.