SET index drops 11.44 points
- Published: 25 Oct 2013 at 16.59
- Online news:
Thai stocks slid 0.8% on Friday in line with weak sentiment in Asia and in response to a reduction in domestic economic growth forecasts.
The Stock Exchange of Thailand Index fell 11.44 points from Thursday to close at 1,454.88, a decrease of 2% from the previous Friday's close of 1,484.72. Turnover was weak at 28.3 billion baht, with 5.48 billion shares traded.
The local market is up 4.5% from the end of 2012 and down 11.5% from the year-high of 1,643.34 reached in mid-May.
The Bank of Thailand on Friday cut its projection for gross domestic product growth to 3.7% this year from 4.2% earlier. It said the revision reflected "more-than-expected moderation in domestic demand and delayed export recovery".
Foreign investors were net sellers on Friday of 134.4 million baht worth of Thai shares, reducing their net buying for the month to 2.22 billion baht. For the year to date they are net sellers of 104.2 billion baht.
Local institutions were net sellers of 89.2 million baht and brokers sold 107.5 million. Individual investors were net buyers of 330.85 million baht.
World stock markets were dragged down by doubts about the durability of recoveries in Japan and China.
Tokyo's benchmark dived 2.8% after Japan released inflation figures that gave a mixed signal about the effectiveness of Prime Minister Shinzo Abe's economic revitalisation strategy.
The consumer price index rose for a fourth straight month in September but much of the increase was due to higher costs for imported food and energy as monetary easing has weakened the Japanese yen.
On top of that, the Chinese central bank's refusal to inject funds into money markets this week to curb frothy credit growth has sparked fears of a liquidity squeeze, with bank-to-bank lending rates inching higher.
Markets were muted in Europe. Britain's FTSE 100 fell 0.1%, Germany's DAX shed 0.2% and France's CAC-40 lost 0.5% in early trading. Wall Street also appeared poised for small declines.
In Asia, Japan's Nikkei 225 shed 2.8% to 14,088.19 and Seoul's Kospi slipped 0.6% to 2,034.39.
Hong Kong's Hang Seng fell 0.6% to 22,698.34 and China's Shanghai Composite was off 1.5% at 2,132.96. Benchmarks in Taiwan, Jakarta, Malaysia and Singapore were also weaker.
In Bangkok, the SET50 index of blue chips ended at 992.01 points, down 9.29 points, with total trade value of 19.52 billion baht. The SETHD index of high-dividend shares fell 10.65 points to 1,167.09, with turnover of 8 billion baht. The Market for Alternative Investment lost 1.16 points to 400.26, with transaction value of 1.5 billion baht.
The five most active shares by value were TRUE, declining 15 satang to 9.05 baht; TMB, up 8 satang to 2.86 baht; ADVANC, down one baht to 256; KBANK, down 50 satang to 186 baht; and INTUCH, unchanged at 85 baht.
In the currency markets, the baht completed a small decline from the previous week after data showed exports shrank in September and the reduction in the central bank's growth forecast.
The US dollar value of exports in September fell 7.1% from a year earlier, compared with a 3.9% increase in August, and against analysts' forecasts for a 3.6% gain in a Bloomberg survey.
The baht was trading late Friday in Bangkok at 31.06/11 to the dollar, compared with 31.12/15 on Thursday, and 31.03/07 a week earlier.
"There will be concern about the economy with the poor export data," said Nath Wongsaroj, a senior vice president at Mizuho Bank in Bangkok. "The market may be wary of intervention to ensure the shipments remain competitive in the region."
The yield on the 3.45% bonds due in March 2019 dropped eight basis points to 3.48%.