Thailand's stock market recovered on Thurday from early losses to end the day with a marginal decline as investors' nerves were rattled by the US President's latest move to declare a national emergency over IT threats.
The Stock Exchange of Thailand (SET) index closed at 1,614.75 points, down 6.52 points or -0.4%, in turnover worth 60.4 billion baht. The benchmark dropped to 1,604.76 at one point during trading hours.
Foreign investors were net sellers of 1.96 billion baht, with institutional investors offloading 913.8 million baht worth of shares.
Shares of Gulf Energy Development Plc (GULF) and Intouch Holdings Plc (INTUCH) recorded the biggest sell-off, down 4.63% and 1.72% from the previous day, respectively.
Disappointing first-quarter operating results for Gulf Energy and Intouch could be behind the sell-off. Gulf Energy's net loss widened to 24.3% year-on-year because of exchange rate losses, while Intouch's net loss increased by 20% year-on-year mainly thanks to subsidiary Thaicom's share disposal of CS Loxinfo in last year's first quarter.
The Jakarta Composite index fell the most among Asia-Pacific indices, tumbling by 1.42%, followed by the Philippine Stock Exchange index (-1.34%) and South Korea's Kospi index (-1.2%).
But the main factor behind investors' sinking confidence is an executive order signed by Mr Trump to prohibit the purchase or use of equipment from companies posing "an unacceptable risk to the national security of the US or the security and safety of US persons".
Mr Trump also added Chinese telecom giant Huawei to a blacklist of US sales restrictions, adding fuel to the flames engulfing the Sino-US trade disputes.
US Treasury Secretary Steven Mnuchin may travel to China soon to continue bilateral trade negotiations, with global stock markets likely to keep a close watch on developments, in addition to the outlook of SET-listed companies' operating results going forward, said Vajiralux Sanglerdsillapachai, head of research for Asia Wealth Securities.
Jitra Amornthum, head of research at Finansia Syrus Securities, said the SET continues to be volatile as concerns over the Sino-US trade war pressure investor sentiment.
Domestic political developments add to the shroud of uncertainty as it is still unclear whether newly elected Democrat Party leader Jurin Laksanavisit will form a coalition government with Palang Pracharath Party, said Ms Jitra.
