Stocks suffer

Share prices at the Stock Exchange of Thailand fell nearly 3 per cent on Monday, the sixth day in a row of losses as foreign investors fled the market. Finance Minister Surapong Suebwonglee and financial experts blamed the PAD street protests and rumours of a military coup.

"I admit that the problem of protesters during the past week has affected the economy and investor confidence," Dr Surapong told reporters. "I am explaining to them (investors) that the protests will not lead to violence or a military coup."

The finance minister said army commander Gen Anupong Paojinda told him that, "No soldier wants to stage a military coup."

In addition, he said, there was no justification for dissolving Parliament or for the government to resign.

Investor confidence remained shaky. The SET index dipped 2.8 per cent, adding to the 4.8 per cent fall it suffered last week in its biggest weekly decline since just before the last coup of Sept 19, 2006.

"Stock trading in our market this morning has been affected by the ongoing anti-government gathering," said Veerachai Klongsamsee, senior director of the investment strategy division of Far East Securities Co.

Mr Veerachai said foreign investors had dumped Thai shares during the past several days. The heavy foreign net sales had pressed the SET index movement.

"Earlier," he said, "political tension seemed to ease after the charter amendment motion was dropped and embattled Prime Minister's Office Minister Jakrapob Penkair resigned after police decided to press a lese majeste charge against him last week.

"But the People's Alliance for Democracy's move to raise its demand for the resignation of the government has resulted in a renewed confrontation between the two conflicting parties,” said the Bangkok securities analyst.

He projected the index could drop to stay around 800 points or even lower if the political turmoil persists.

PAD core leader Chamlong Srimuang repeated on Monday that demonstrators will not relocate from their positions near the United Nations building until Prime Minister Samak Sundaravej resigns.

"We are staying here until the nominee government is out of office," Maj-Gen Chamlong said. The PAD maintains that the Samak administration is a puppet of former prime minister Thaksin Shinawatra.

Last Saturday, Mr Samak threatened to clear the protest by force, but he backed down after a tense standoff between the demonstrators and riot police. (With reports from TNA, Agencies)