Analysts expected the Stock Exchange of Thailand to fall on Thursday after several protest leaders were arrested overnight and a state of emergency declared by the government.
Analysts say that the market would also be adversely affected as the US economic stimulus package remains uncertain.
Thailand government declared a State of Emergency early on Thursday following massive demonstrations the day prior and arrested several protest leaders overnight. More protests have been called to oppose the government action.
Analysts at TISCO Securities said that the declaration of the emergency decree may result in the suspension of foreign investment. Analysts at Krungsri said they expected continued protests add more political and economic vulnerability.
There is also pressure from a potentially delayed US economic stimulus package, both sets of analysts said.
MayBank Kim Eng analysts said rally goers moving to the Rajprasong area would be a negative factor in CPN stocks as the company owns commercial real estate within the area.
As the market opened on Thursday, the SET index dropped by 10.16 to at 1,253.83, down -0.8 per cent.