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Thai stocks fall after bombings | Thai stocks fall after bombings |
(20 minutes later) | |
Thailand's main stock index has fallen as much as 3.8% as investors reacted to the New Year's Eve bombings in Bangkok. | |
During Wednesday trading, the first time the Bangkok market has been open since the attacks, the SET index fell 4% at first before recovering slightly. | |
Thailand has been bracing itself for a downturn in the wake of the bombs, especially in the tourist sector. | Thailand has been bracing itself for a downturn in the wake of the bombs, especially in the tourist sector. |
Despite the predicted fall, the effect was far less than two weeks ago, when the market plunged 15% in one day. | |
The sharp downturn in December followed central bank plans to limit the amount of money that could be withdrawn by investors. | |
The plan was then partially rescinded to exclude foreign stock investments, causing the market to bounce back 11% the following day. | The plan was then partially rescinded to exclude foreign stock investments, causing the market to bounce back 11% the following day. |
'Business centre' | |
On Wednesday, the SET index fell to as low as 654.02 before recovering to 662.09, down 2.6% from Friday, the last day of trading in 2006. | |
However, the bombs have had a limited impact on bonds or Thailand's currency, the baht. | |
The baht, Asia's fastest-rising currency against the dollar in 2006, was trading at 36.05 to the dollar, from 35.46 late on Tuesday. | |
The blasts in Bangkok have not only shocked the people of this normally peaceful city - they have also increased fears of political and economic instability. | The blasts in Bangkok have not only shocked the people of this normally peaceful city - they have also increased fears of political and economic instability. |
"The damage caused by the bombings is huge because it makes people think Thailand is unsafe - especially since the incident happened in Bangkok, which is the business centre," Pornsilp Patcharintanakul, deputy chief of Thailand's Board of Trade, told the AFP news agency. | |
The tourist sector is also vulnerable. Although none of the three people who died in the explosions were tourists, nine foreigners were among the injured. | The tourist sector is also vulnerable. Although none of the three people who died in the explosions were tourists, nine foreigners were among the injured. |
Shares which saw a fall on Wednesday included those in shopping centre operator Central Pattana, Bangkok Bank, and state oil and gas company PTT. |