SET: Foreigners Resume Stance As Net Buyers

SET: Foreigners resume stance as net buyers

Siriporn Chanjindamanee

The Nation

The Stock Exchange of Thailand yesterday extended its run of losses, as investors worldwide continued the panic-selling of equities over growing fears that Greece will default on its debt and the euro-zone debt crisis will spread.

Local brokerage houses suggested that investors should adopt a "wait and see" stance.

The SET Index yesterday lost another 13.86 points or 1.59 per cent, on turnover of Bt34.4 billion.

At the close of trading, the index stood at 855.45 points.

However, there was some good news in that foreign investors remained net buyers on SET for the first time in two weeks. Their purchases yesterday outpaced sales by Bt44.7.7 million, boosting accumulated net buys this month to Bt843.5 million.

Despite this, the bourse ended lower because of local institutions' net sells reaching Bt2.9 billion.

The losses followed another slump on Wall Street, where the Dow Jones Industrial Average shed 2.36 per cent on Monday trading in the US to finish at its lowest level since September last year.

Fears over a growing debt crisis rose after Greece said it would miss the deficit-reduction targets that are a key condition for the country receiving a vital €8-billion (Bt329 billion) bail-out package from other euro-zone economies.

Finansia Syrus Securities said that while trend was for the SET Index to dip further, this presented an opportunity to buy stocks for medium- and long-term investment.

A falling index will also lower the SET's price/earnings ratio, which might woo investors back to the market late this year, especially from long-term funds and retirement mutual funds.

Tisco Securities said investors were concerned about the slowing US economy and the European Union debt crisis, as well as the heavy flooding in Thailand, which could lead to a hike in goods prices and force the government to lower its estimate for economic growth.

-- The Nation 2011-10-05