Poor sentiment dampens Thai shares
Thai shares dropped on Monday, as internal and external negative factors are pressuring the market sentiment.
The composite SET index lost 7.18 points to 1,037.63 points at 3.08pm, on turnover of Bt9 billion.
At the close, the SET Index lost 7.80 points or 0.75 per cent to 1,037 points, on turnover of Bt13.76 billion.
Stock analysts expected the index to be pressured by two main issues - the overall picture of the European debt problem as well as the handling of Financial Institutions Development Fund's debt.
Also because of the terrorist attack alerts imposed by 11 countries, Tisco Securities expected the index to move in the range of 1,035-1,055 points today.
Last Friday, reports of possible attacks in Bangkok sparked sell-offs among foreign investors. Foreign net-sell in the day topped Bt431 million, pushing the month-to-date net-sells to Bt2.95 billion.
From February to April 2012, PIIGS (Portugal, Ireland, Italy, Greece and Spain) are required to repay the highest amount of debts in the year. These debts are estimated at 225 billion euros (Bt9 trillion) for three months combined. Bad news is Standard & Poor's Ratings Service on Friday downgraded 9 European countries' ratings, including France and Austria which lost the "AAA" status.
Meanwhile, Thai commercial banks this week are expexted to submit their proposals on the FIDF debt handling. If they are required to make a bigger contribution to help pay off the debt, this would pressure banking stocks - which weigh over 10 per cent of the Stock Exchange of Thailand's market capitalisation.
