Thai Stocks Plunge Nearly 5per Cent On Domestic Factors

[churchill]

BANGKOK, Oct 15 (TNA) - Thai stocks plunged nearly five per cent by the end of morning trading Thursday on negative domestic factors.

The Stock Exchange of Thailand (SET) was down by 4.69 per cent to 697.13 points after it dived to the lowest level of the morning trade to 629.61 with a heavy trading value of Bt28.44 billion.

Large-capitalised stocks were among the top selling including PTT, PTTEP, Banpu and Bangkok Bank.

The negative domestic factors which affected the market were the political situation and the uncertainty for the investments of 76 industrial projects at Map Ta Put.

The anti-government United Front for Democracy Against Dictatorship (UDD) or the so-called Red Shirts plan to stage a major protests in the capital on October17 and 24.

The Central Administrative Court last month ordered 76 industrial projects in the Map Ta Phut industrial estate in the eastern seaboard province of Rayong to temporarily halt operations amid continuing concerns about critical environmental and health impacts.

Mounting concerns by investors over the court’s order to suspend industrial projects in the Map Ta Phut Industrial Estate and the non-governmental organisations’ threat to seek the same injunction against operations of 500 more projects were other reasons behind the SET index plunge.

The SET index fell 2 per cent on Wednesday to close at 731.47, its largest decline in nearly two months. (TNA)

-- TNA 15/10/09

http://enews.mcot.net/view.php?id=12301

[churchill]

Any views on how these " Domestic Matters " will effect the Baht ?

[chiang mai]

Any views on how these " Domestic Matters " will effect the Baht ?

It's falling (GBP/THB) as I write, now at 54.31 and in steady decline - but also some good numbers out of the UK today so that may have helped.

[moobie]

Because of the subject matter I will not post the link (that should give a clue) but yahoo world news is worth looking at today as it gives a thought provoking reason why the 5% drop may have occured/be occurring further.

[khunjake]

Just goes to show how quick traders are to book profits after a such a huge run-up. Cut loose and ask questions later is the mantra. SET 50 December futures down close to 9.5% at one point today. Could happen in any other markets right now, just need a little spook out on the trading floors and that's all it takes..

[Naam]

Because of the subject matter I will not post the link (that should give a clue) but yahoo world news is worth looking at today as it gives a thought provoking reason why the 5% drop may have occured/be occurring further.

for the clueless ones: "Moobie" is referring to a topic which to discuss is against forum rules and i agree that it should not be discussed.

[churchill]

Hence " Domestic Matters "

[churchill]

Just goes to show how quick traders are to book profits after a such a huge run-up. Cut loose and ask questions later is the mantra. SET 50 December futures down close to 9.5% at one point today. Could happen in any other markets right now, just need a little spook out on the trading floors and that's all it takes..

Also Sterling up on short covering after a few comments . $ next ?

[WhiteShrek]

Bloomberg has been running two articles on this if you look at the section under regional news for Asia. One has been the same article all day under "general news" and hasn't changed saying the official line is things are stable.

The other under "financial news" has been coming and going at intervals during the day with various updates. This second article highlights a variety of factors that undermine confidence in Thailand in addition to the unspeakable.

Yesterday 4.3% down at one point then closing down just over 2% might seem a blip based on rumours. When the same rumour continues overnight into a second day, where it was down around 8% at one point, then closed down over 5% you have to wonder how low things could go and for how long should the unspeakable come to pass....

[chiang mai]

Is anyone else able to connect currently to UK news sources or is it just me using CAT in the South who cannot, BBC, Reuters, Telegraph etc? It would be nice to get a different news perspective on these events.

Edited October 15, 2009 by chiang mai

[humbug]

rumours are justified in my oppinion as any ailment of pneumonia shouldnt be taken likely

for those who think its just profit taking, then just look at the volumes of the past 2 days, very much on a par with the volumes which occured during the capital controls.

as this topic has great relevence to this country then the financial markets would want a little more proof than just short messages to say everything is ok

if anything did occur on the negative side , then its better to have money on the sidelines than participate

[WhiteShrek]

Is anyone else able to connect currently to UK news sources or is it just me using CAT in the South who cannot, BBC, Reuters, Telegraph etc? It would be nice to get a different news perspective on these events.

Just you who can't connect. I have no problem with Reuters or BBC. Wouldn't bother with the Telegraph for up to the minute news on Thailand

[EnhancePlus]

This might be a rather naive question, but I read that the SET would shut down for a day or so. Now is this a legitimate thing to do to a financial market?

[chiang mai]

This might be a rather naive question, but I read that the SET would shut down for a day or so. Now is this a legitimate thing to do to a financial market?

Where did you gain that information from please? Hearsay or fact and in the case of the latter, a link would be very useful - I think it's very important.

[lannarebirth]

This might be a rather naive question, but I read that the SET would shut down for a day or so. Now is this a legitimate thing to do to a financial market?

Where did you gain that information from please? Hearsay or fact and in the case of the latter, a link would be very useful - I think it's very important.

It is stated in an article on the cover page of the BP's website. I don't think you can link to it anymore.

edit: The language has been changed to "circuit breakers" could cause a suspension of trading. It does not define how long that time is.

Edited October 15, 2009 by lannarebirth

[MB1]

I read on the website and it's an important thing to note that the SET President Patareeya Benjapolchai had said that SET was ready to suspend trading if the market slumped more than 10 per cent.

Can't post a link as I believe it's now against forum rules.

Edited October 15, 2009 by MB1

[EnhancePlus]

Yes, lannarebirth, is correct in the source. Still, curious as to the legality of suspension, has this been done before in any other markets?

[IMA_FARANG]

This might be a rather naive question, but I read that the SET would shut down for a day or so. Now is this a legitimate thing to do to a financial market?

Stock exchanges can be closed due to "extraordinary" circumstances.

The NYSE was closed for a short period right after 9/11 and the destruction of the twin towers in New York.

Don't know what compares to that in Thailand, but it can happen.

My question...why did the Baht rate go from 33.3 to a dollar to 32.2 to a dollar in just one day?

Is somebody big/important selling dollars in Thailand?

That happened before just before the Baht was devalued.

Edited October 15, 2009 by IMA_FARANG

[lannarebirth]

Yes, lannarebirth, is correct in the source. Still, curious as to the legality of suspension, has this been done before in any other markets?

Yes, it's standard operating procedure in most markets if a given percent drop has occured within a defined time period. For example:

http://www.nyse.com/press/circuit_breakers.html

Edited October 15, 2009 by lannarebirth

[chiang mai]

This might be a rather naive question, but I read that the SET would shut down for a day or so. Now is this a legitimate thing to do to a financial market?

Where did you gain that information from please? Hearsay or fact and in the case of the latter, a link would be very useful - I think it's very important.

It is stated in an article on the cover page of the BP's website. I don't think you can link to it anymore.

edit: The language has been changed to "circuit breakers" could cause a suspension of trading. It does not define how long that time is.

Ah, that's slightly different then, SOP as you say, thanks.

[IMA_FARANG]

Because of the subject matter I will not post the link (that should give a clue) but yahoo world news is worth looking at today as it gives a thought provoking reason why the 5% drop may have occured/be occurring further.

Oh dear. A matter that "can't be discussed on the forum" of importance to Thailand.

I hope that's not what I think it could be.

[EnhancePlus]

Yes, lannarebirth, is correct in the source. Still, curious as to the legality of suspension, has this been done before in any other markets?

Yes, it's standard operating procedure in most markets if a given percent drop has occured within a defined time period. For example:

http://www.nyse.com/press/circuit_breakers.html

Thanks for that bit of info and you too IMA FARANG. I just never knew that a market could just shutdown like that. I kinda ignored the news for a week or 2 during 9/11.

[pkrv]

If one loves ones country, truly, then all contingencies will be met, a transition, that I have no doubt must be met by obligation. With great power comes great responsibility. Thailand moves forward into a future that perhaps does not mirror its past.

[metisdead]

If one loves ones country, truly, then all contingencies will be met, a transition, that I have no doubt must be met by obligation. With great power comes great responsibility. Thailand moves forward into a future that perhaps does not mirror its past.

A profound statement!

[Ned]

A run on the banks?

[WhiteShrek]

A run on the banks?

Very much doubt it. Most Thai banks have strong AD ratios and healthy liquidity positions. Run on banks is usually local retail investors losing confidence in a bank. In the case of Northern Rock as an example it was retail withdrawals combined with being a net borrower in the interbank market. Thai banks are net lenders in the interbank market not net borrowers. Foreign banks are more likely to borrow from local Thai banks in Thai interbank market. BOT is also well placed to support Thai banks and sees no real stigma in doing so when needed. Decent reserves too unlike Iceland sovereign.

[WhiteShrek]

Personally think this will blow over - this time. The worst for this particular factot, was actually a few weeks back. The impact on confidence is the interesting factor, combined with the lack of any timely market information. Consider it a dummy run of the type of things that could happen when the unspeakable eventually does happen. Watch, observe, learn from it. You probably won't get this type of rumouring/ warning when the unspeakable does eventually hit.... and the repercussions will extend far beyond the stock market.

Thailand has a habit of saving the bad news and telling you afterwards when the danger has past and no-one is really interested. It's when the danger hasn't past and you are unaware of the subject at hand - or unaware that there is even an issue - that the country is at its most dangerous.

Edited October 15, 2009 by WhiteShrek

[mommysboy]

Any decent poster is really snookered by the reasons muted for the decline. Thread frustrated in my view. Can we close?

[howzat]

Because of the subject matter I will not post the link (that should give a clue) but yahoo world news is worth looking at today as it gives a thought provoking reason why the 5% drop may have occured/be occurring further.

Also check the Hong Kong Standard on line.

[sokal]

If one loves ones country, truly, then all contingencies will be met, a transition, that I have no doubt must be met by obligation. With great power comes great responsibility. Thailand moves forward into a future that perhaps does not mirror its past.

I like the SET, low P/E in comparison to the rest of Asia . If it falls some more then I will buy in.