Thai shares close slightly lower on profit-taking, baht strength

Thai shares close slightly lower on profit-taking, baht strength - UPDATE

	Published : Thu, 05 Jul 2007 12:19 By : Agencies Print this Story

BANGKOK (Thomson Financial) - Thai share prices closed marginally lower Thursday, after hitting their highest levels in 10 years spurred by massive inflows since early this week, on profit-taking.

The sharp rise of the Thai baht, which is also at a 10-year high, has fueled concerns about Thailand's critical export sector.

The Stock Exchange of Thailand (SET) composite index shed 1.52 points or 0.18 percent to close at 823.93 points, and the blue-chip SET 50 slipped 1.84 points to 588.43.

Losers led gainers 199 to 171, with 108 stocks unchanged on trading of 5.4 billion shares worth 35.0 billion baht.

The Thai baht further appreciated against the dollar, closing at 34.00-02 to the greenback compared to Wednesday's 34.19-21. Against the euro, the Thai unit closed at 46.30-50 from 46.56-60.

Analysts said shares dropped as the market consolidated after the index jumped by 50 points or 6.1 percent over the past three days.

'The market fluctuated before closing slightly lower on profit-taking in big-cap energy and banking stocks,' said Chai Chiraseveenupraphan, a market strategist at Capital Nomura Securities.

'Trading volume remained substantial even though it was somewhat lower than the past few days,' he added.

Chai said the sharp rise of the Thai baht raised concerns over the impact on exports, as the central bank on Thursday tried to soften exporters' worries, saying the increase is only short-term.

The Thai currency has risen by about 6 percent since the beginning of the year, as foreign investors bought over 100 billion baht worth of local shares.

Bank of Thailand governor Tarisa Watanagase said the bank had been trying to slow the baht's sharp rise.

'We are not looking at a specific rate for the baht, but making sure that the speed of the appreciation is in line with other regional currencies,' Tarisa told reporters.

Thailand's top energy firm PTT lost 6.00 baht to 284.00 baht, and its unit PTT Exploration and Production dropped 2.00 to 116.00.

The kingdom's top lender Bangkok Bank was down 1.00 to 127.00, while the third largest lender Kasikorn Bank edged up 0.50 to 83.50.

Thai Airways International fell 0.50 to 44.25. The country's largest mobile phone operator Advanced Info Service shed 0.50 to 90.00.

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Thai shares close slightly lower on profit-taking, baht strength - UPDATE