(Recasts, updates with closing prices)
BANGKOK, Sept 25 (Reuters) - Shares in Thai finance firm Finansa Plc fell on Wednesday on their market debut, hit by poor market sentiment despite a bullish long-term outlook for the firm, analysts said.
Finansa shares closed at 22.20 baht, 11.2 percent lower than their initial public offering price (IPO) of 25 baht.
Analysts attributed the fall to poor sentiment affecting the market as a whole. The Thai bourse closed down 1.3 percent after hitting an eight-month low earlier in the day, hit by steep losses on Wall Street this week.
"I think in terms of fundamentals Finansa is a good stock, but market sentiment is not so good right now," said Sirinattha Techasiriwan, an analyst at Syrus Securities. She has a share price target for Finansa of 32 baht by the end of 2003.
Analysts say Finansa is different from other Thai finance firms, which mostly rely on brokerage fees, now depressed by low stock market volumes, or on supplying consumer finance.
Fund management made up just over 50 percent of Finansa's revenue last year, with investment banking accounting for 30 percent of 2001 revenue.
"It's a shame it listed today, another day it would be trading above its listing price," said Rod Macmillan, head of sales at ABN AMRO Asia Securities in Thailand.
Finansa's IPO of 36 million shares raised 900 million baht ($20.78 million) and valued the firm at 2.5 billion baht. The money raised will help Finansa buy a leasing firm from Ford Motor Co and bolster reserves for working capital and future investment.
Sirinattha said Finansa's drop below its IPO price mirrored that of SICCO Securities Plc and Asset Plus Securities (ASSE.BK> which listed on the Thai stock exchange last week.
Asset Plus has slipped three percent from its debut price of 25 baht, while SICCO has slumped 65 percent since listing at 20 baht.
($1 = 43.31 baht)