BANGKOK, Oct 30: Thai stocks fell almost 2 percent to a three-week low on Wednesday amid domestic political tensions while most other markets in Southeast Asia edged higher amid hopes the U.S. Federal Reserve would maintain its monetary stimulus.
The Thai benchmark SET index was down 1.7 percent at 1,430.98, the lowest since Oct. 9, with shares such as Airports of Thailand and Siam Commercial Bank reversing recent gains amid profit-taking.
Cautious investors cut riskier holdings as lawmakers will debate a political amnesty bill on Thursday seen aiming to annul legal cases involving a coup in 2006.
‘The Thai political situation will be more intense in the near term and should weigh on market sentiment,’ strategists at broker KGI Securities wrote in a report.
‘The lower house has resolved to meet tomorrow to vote on the amnesty bill, while the opposition Democrats are urging people to come out on the street the same day to voice their objection to the bill,’ they said.
The Philippine index was an outperformer, up 0.73 percent, as market players bought shares in beaten-down large caps such Ayala Land Inc which jumped 3.6 percent, the top percentage gainer on the benchmark.
Bargain hunting across exchanges helped index heavyweights including Malaysia’s Tenaga Nasional, and Indonesia’s Bank Mandiri snap recent losses.
Investors are closely watching the U.S. Fed’s two-day policy meeting ending later on Wednesday for clues on its monetary policy, with analysts expecting its bond buying to be maintained for the next few months.
Among weak spots, shares of Indonesia’s PT Indofood Sukses Makmur Tbk dropped 5.5 percent after the instant noodle maker posted a significant drop in net profit for the nine-month period ended Sept. 30.
The broader Jakarta’s Composite Index pared earlier gains, edging down 0.09 percent.
(agencies)
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