Aug. 18--Thai stocks dropped 3.39 percent yesterday as markets across the globe tumbled on fresh concerns about the US and world economy.

The Stock Exchange of Thailand index closed at 632.05 points, down 22.2, in active trade worth 26.35 billion baht.

Energy stocks lost 4.69 percent, banks fell 3.62 percent while property stocks dropped 4.36 percent.

Foreign investors, who have been active investors in the Thai market this year, were net sellers of 1.06 billion baht in stocks yesterday, with local institutions net buyers of 1.1 billion and retail investors net sellers of 76 million in stock.

Across the region, Shanghai lost 5.79 percent, Tokyo dropped 3.1 percent and Hong Kong fell 3.62 percent.

The decline comes after months of strong rallies in the global equities as investor risk-appetite has risen on hopes that the worst of the global economic crisis has passed. Even with yesterday's declines, the SET index remains up 21.11 percent over the past three months and up 45.4 percent for the year-to-date.

Kavee Chukitkasem, an assistant managing director at Kasikorn Securities, said weak US consumer confidence figures for August fanned new fears among investors that the recovery may well be extended.

A decline in oil prices helped push the large-cap energy sector down, which in turn helped pull down the main index. Oil prices fell under $66 per barrel yesterday to a new low for the month.

Mr Kavee said profit-taking was to be expected after the sharp gains made over the past several months.

He said a consolidation in a bull market could see the index fall by 10 percent before rebounding again, with the index potentially seeing support at 620 points.

Second-quarter results meanwhile are unlikely to have much of an impact on the market, as returns have mostly been in line with expectations.

Sombat Narawutthichai, the secretary-general of the Securities Analysts Association, said listed-company earnings could top 100 billion baht for the second quarter, a decline from the same period last year but a clear improvement from the first quarter.

Listed companies reported a profit of 80 billion baht in the first quarter, compared with losses of 90 billion in the fourth quarter of 2008.

Among most active stocks yesterday, PTT fell 15 baht to 235, TMB dropped 0.01 to 1.08 baht and Banpu lost 18 to close at 398.

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