Most of Asia's bourses take hit Falls follow further banking fears

Hong Kong's Hang Seng Index closed down 380.22 points, or 2.9 per cent, at 12,959.77. India's 30share Sensex slid 229.02 points, or 2.45 per cent, to 9,100.55, Japan's Nikkei225 closed off 2.31 per cent to 8,065.79 points, and South Korea's Kospi ended down 2.1 per cent at 1,126.81 points.

Singapore's Straits Times Index fell 23.62 points, or 1.35 per cent, to 1,723.37. The Kuala Lumpur Composite Index fell 9.91 points, or 1.1 per cent, to close at 880.37 and the Jakarta Composite Index fell 6.54 points, or 0.5 per cent, to 1,344.15.

All markets declined except China and Sri Lanka. The benchmark Shanghai Composite Index, which covers A and B shares, closed up 0.37 per cent to 1,994.11 points.

Thai shares yesterday started the day with a loss and hit the day's trough at 429.29 points before recovering to close at 433.19, down 0.58 per cent. Turnover was thin at Bt6.5 billion.

Thai bank and energy stocks were sent reeling in the selling spree in the first trading session before closing down slightly or reserving to end lower.

Siam Commercial Bank closed unchanged at Bt51, Kasikornbank dropped 0.56 per cent to Bt44.50, Bangkok Bank rose 0.74per cent to Bt68, Bank of Ayudhya fell 0.56 per cent to Bt8.90, Banpu dropped 0.89 per cent to Bt222, PTT shed 0.63 per cent to Bt157 and PTT Exploration and Production dropped 1.94 per cent to Bt101.

Jitra Amorntham, senior vice president for research at Syrus Securities, said yesterday's drop in the Stock Exchange of Thailand (SET) Index was spurred by heightened concerns that fourthquarter earnings of local and international corporations would be disappointing.

Thai banking stocks were also at the centre of selling pressure, with investors concerned about selling on fact after announcing quarterly financial results and anticipations of hefty losses at the Royal Bank of Scotland and HSBC, she said.

The government's new tax measures to stimulate the economy announced yesterday partially helped pare early losses, Jitra said.

However, she recommended that investors hold back and digest the situation. The next support and resistance levels have been set at 420 and 440 points, respectively.

One analyst at a local broker said the largest loss in the Royal Bank of Scotland's history had deteriorated investor confidence, even though the UK government announced a new bailout plan for banks.

The Thai stock market tracked losses in other Asian stock markets, with investors concerned about the state of European banks, while thin trading volume in the SET indicated that investors were not confident about the situation, the analyst said.

"The market fell slightly, just in line with other regional markets. Trading was very light as investors waited for news from the US tonight [Tuesday]," Agence FrancePresse quoted Mayuree Chowvikran, senior vice president at Kim Eng Securities, as saying.

"Everyone wants to hear what Obama will say tonight, especially his plans for the economy," she added.