Market slides on expecations of PTT loss in the first quarter

The composite SET index started the day with a gain propelled by news that the coalition parties won more seats in Parliament from the byelection on Sunday.

However, the early euphoria succumbed to a series of brokers' analysis reports that forecast PTT would show a massive net loss of over Bt10 billion for the 2008 fourthquarter period due to the bleeding at its refining and petro¬chemical units and the dis¬mal earnings at PTT Exploration and Production.

The SET index closed at 452.80 points, just off the day's trough of 451.10.

Turnover was thin at Bt9.35 billion. Foreign investors were net sellers to the tune of Bt684.63 million.

PTT was down 5.08 per cent at Bt168, PTT Exploration and Production (PTTEP) slumped 4.42 per cent to Bt108, Thai Oil (TOP) fell 4.49 per cent to Bt23.40, PTT Aromatics and Refining (PTTAR) slid 4.72 per cent to Bt10.10, and IRPC dropped 0.94 per cent to Bt2.10.

PTT Chemical (PTTCH), however, bucked the trend, rising 1.55 per cent to Bt32.75.

Pichai Lertsupongkit, executive vice president of Thanachart Securities, said the selling pressure in PTT and PTTEP stocks heavily dragged down the SET index.

PTT's earnings down¬grade triggered foreign investors' selloff in the stock as well, he added.

An analyst at Syrus Securities said several bro¬kerages have revised downward their earnings estimates for PTT after PTT's executives told them in a briefing that almost all of PTT's subsidiaries would show red ink for the fourth quarter.

PTT's refining units would take a massive oil inventory writedown due to the sharp decline in crude oil prices to about US$40 per barrel from $147 last July, while its petrochemical units in the aromatics business would also lose money, the ana¬lyst said.

PTT might report a net loss of over Bt10 billion in the fourth quarter, the ana¬lyst said.

However, anticipation that the Bank of Thailand's Monetary Policy Committee would slash the oneday repurchase rate by at least 50 basis points tomorrow would fan specu¬lation, the same analyst said.