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BANGKOK : Thai share prices dropped 3.2 percent Wednesday in opening trade on the first day of business after the New Year holiday amid security fears following deadly bomb blasts in Bangkok.
Dealers said the New Year's Eve blasts that killed three and wounded 38 raised new fears about Thailand's security and added to doubts about the post-coup government.
The Stock Exchange of Thailand (SET) composite index was down 21.66 points to 658.18 in the first eight minutes of trading.
Adisak Kammnool, senior stock analyst at KGI Securities, said foreign investors dumped Thai shares on worries over the impact of the bombings on the economy, rather than in view of the political uncertainties they raise.
"While they ignored the impact of political uncertainties in Thailand, they sold shares on concerns over declining consumption and investment after the blasts that rocked the business dictrict in Bangkok," he told AFP.
"Those factors could lead to lower economic growth in Thailand than they had expected," he said.
"As more risks arise in the Thai market, investors expect a lower rate of return in the Thai bourse this year," he added.
The Thai baht weakened slightly, trading at 36.15 to one dollar, against 36.05 at the close of trade on Friday, dealers said.
The latest losses follow a massive losses in mid-December after the authorities introduced and then quickly reversed measures aimed at halting the baht's sharp gains.
The market lost nearly 15 percent on December 19 after foreign investors were scared off by steps to effectively lock up for a year 30 percent of any fund inflows coming into Thailand for financial investment.
As a result, the government backtracked and the market recovered much of the lost ground in the following days but the policy flip-flop left investors nervous about the outlook for Thailand.
The bomb attacks on New Year's Eve have only added to that nervousness. - AFP/ch
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