Foreign investors dump shares on concern over capital inflow control

BANGKOK, Nov 16 – Securities Analysts Association (SAA) Secretary-General Sombat Narawutthichai on Monday said that foreign investors had recently sold off quantities of Thai shares to adjust their investment portfolios upon concern over the possible Bank of Thailand (BoT) move to control capital inflows.

He said the Stock Exchange of Thailand (SET) composite index is likely to hover and consolidate its base following a continued surge boosted by heavy buying by foreign investors.

However, foreign investors, institutional investors and small investors recently dumped shares following the BoT decision to control lending to buy property valued at less than Bt10 million.

In addition, the foreign investors have begun to worry that the central bank will intervene to control foreign capital inflows.

“Securities analysts have different perspectives on the direction of the SET index. Some have begun to see capital outflows since the index had recently risen dramatically.

“The price/earning ratio remains as high as 16 times. Still, some analysts believe that foreign capital will continue flowing into Thailand as a result of the Fed’s move to implement the Q2 measure,” said Mr Sombat.

The latest survey on the opinions of securities analysts showed they projected the SET index would continue rallying and stay at 1,133 points by the end of 2011. The index is expected to peak at 1,200 points and bottom at 907 points. (MCOT online news)

-- TNA 2010-11-16

wait for it, wait for it, wait for it - crash bang wallop - coming soon to a BOT near you

Why ???