Thai stocks underperform as martial law declared
HONG KONG
Thailand’s stock market underperformed its counterparts in Asia and around the world on yesterday after the military declared martial law in what it called an attempt to stabilize the country’s precarious political situation.
Bangkok remained calm after Thailand’s military took control of public security nationwide, surrounding police headquarters in the capital as they broadcast the announcement before dawn from multiple television stations. It requested TV channels run by opposing political camps to suspend broadcasts.
The move, which the military insists is not a coup, follows months of anti-government demonstrations and a refusal by the caretaker prime minister to step down.
“We’re likely going to be looking at more unrest on the ground and if that’s the case sentiment is going to worsen a lot more and the Thai market may see further downside,” said Desmond Chua, market analyst at CMC Markets in Singapore.
The benchmark SET index in Bangkok closed down 1.1 per cent at 1,394.70.
Amid a dearth of economic news, stock markets elsewhere drifted.
In Europe, Britain’s FTSE 100 dipped 0.5 per cent to 6,808 and France’s CAC 30 slipped 0.3 per cent to 4,455. Germany’s DAX was down 0.2 per cent at 9,642.
In the US, the Dow Jones industrial average was down 0.3 per cent at 16,463 while the broader S&P 500 index fell 0.3 per cent to 1,881.
Elsewhere in Asia, Asia markets ended mostly higher, with Tokyo’s Nikkei 225 up 0.5 per cent to close at 14,075.25. Hong Kong’s Hang Seng rose 0.6 per cent to 22,834.68 but South Korea’s Kospi slipped 0.2 per cent to 2,011.26. China’s Shanghai Composite Index edged up 0.2 per cent to 2,008.12.
Elsewhere trading was muted with the euro down 0.1 per cent at US$1.3700 while the dollar fell 0.3 per cent to 101.24 yen. Meanwhile, a barrel of benchmark New York crude was down 15 cents at US$101.96.