NUNTAWUN POLKUAMDEE & DARANA CHUDASRI
Thai shares fell 0.85% yesterday over investor worries about the US financial sector and domestic political instability. The Stock Exchange of Thailand index closed at 691.33 points, down 5.9, in thin trade worth 8.67 billion baht. Energy stocks fell 0.01%, banks dropped 2.7% while ICT stocks rose 0.01%.
The decline came even as the SET reported that listed companies posted first-half profits of 312 billion baht, up 38% from the same period last year. Second-quarter profits totalled 157.9 billion baht, up 62% from the same period last year.
Profit growth was led by companies in the resources, financial, property and construction sectors. Overall, 388 listed companies reported profits for the first half, with 86 posting losses.
Listed company revenues totalled 3.79 trillion baht for the first half, up 28% from the same period last year. Excluding the financials group, PTT Plc led all companies in terms of first-half profits at 56 billion baht, more than double the 21.9 billion in profits posted by second-place PTT Exploration and Production. Ranked third was Thai Oil, followed by Siam Cement and Advanced Info Service.
SET president Patareeya Benjapolchai said the gains in net profits and revenues showed the fundamental strength of the Thai business sector.
But negative external factors and local politics dominated sentiment. Most Asian markets closed lower yesterday over concerns that regional economic growth would be hit by the slowing US economy.
Tokyo stocks yesterday fell 2.28% to a one-month low, Hong Kong lost over 2% and Korea and Singapore both lost over 1.5%.
Apisit Limthamrongkul, a deputy research manager at Kiatnakin Securities, said liquidity constraints in the US financial sector were affecting global market conditions and investment flows.
Foreign investors, who were net sellers of 813.76 million baht worth of stock yesterday, have cut back their emerging market holdings over concerns about the lingering impact of the US sub-prime mortgage crisis. Capital outflows have pushed the baht to a 10-month low of 33.85 to the dollar.
Meanwhile, the Election Commission delayed its planned ruling on whether to disband the People Power Party for alleged election fraud until Sept 2. Many analysts expect the PPP to be disbanded, which could force Prime Minister Samak Sundaravej to dissolve Parliament and move for new elections.
Another case closely watched by the markets is whether Finance Minister Surapong Suebwonglee and two other ministers could be forced from office for their involvement in the illegal two- and three-digit lottery programme implemented under the Thaksin Shinawatra government.
The Council of State, the government's legal advisory body, ruled yesterday five to one that Dr Surapong did not have to suspend his duties pending a ruling on the case.
Analysts said the markets should continue to move sideways over the next several weeks pending a legal clarification on the status of the Samak government.
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Thai shares fell 0.85% yesterday over investor worries about the US financial sector and domestic political instability. The Stock Exchange of Thailand index closed at 691.33 points, down 5.9, in thin trade worth 8.67 billion baht. Energy stocks fell 0.01%, banks dropped 2.7% while ICT stocks rose 0.01%.
The decline came even as the SET reported that listed companies posted first-half profits of 312 billion baht, up 38% from the same period last year. Second-quarter profits totalled 157.9 billion baht, up 62% from the same period last year.
Profit growth was led by companies in the resources, financial, property and construction sectors. Overall, 388 listed companies reported profits for the first half, with 86 posting losses.
Listed company revenues totalled 3.79 trillion baht for the first half, up 28% from the same period last year. Excluding the financials group, PTT Plc led all companies in terms of first-half profits at 56 billion baht, more than double the 21.9 billion in profits posted by second-place PTT Exploration and Production. Ranked third was Thai Oil, followed by Siam Cement and Advanced Info Service.
SET president Patareeya Benjapolchai said the gains in net profits and revenues showed the fundamental strength of the Thai business sector.
But negative external factors and local politics dominated sentiment. Most Asian markets closed lower yesterday over concerns that regional economic growth would be hit by the slowing US economy.
Tokyo stocks yesterday fell 2.28% to a one-month low, Hong Kong lost over 2% and Korea and Singapore both lost over 1.5%.
Apisit Limthamrongkul, a deputy research manager at Kiatnakin Securities, said liquidity constraints in the US financial sector were affecting global market conditions and investment flows.
Foreign investors, who were net sellers of 813.76 million baht worth of stock yesterday, have cut back their emerging market holdings over concerns about the lingering impact of the US sub-prime mortgage crisis. Capital outflows have pushed the baht to a 10-month low of 33.85 to the dollar.
Meanwhile, the Election Commission delayed its planned ruling on whether to disband the People Power Party for alleged election fraud until Sept 2. Many analysts expect the PPP to be disbanded, which could force Prime Minister Samak Sundaravej to dissolve Parliament and move for new elections.
Another case closely watched by the markets is whether Finance Minister Surapong Suebwonglee and two other ministers could be forced from office for their involvement in the illegal two- and three-digit lottery programme implemented under the Thaksin Shinawatra government.
The Council of State, the government's legal advisory body, ruled yesterday five to one that Dr Surapong did not have to suspend his duties pending a ruling on the case.
Analysts said the markets should continue to move sideways over the next several weeks pending a legal clarification on the status of the Samak government.
Discuss
Add this link to...
Tell a friend
Bury
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