Investors Pacified As Thai Bourse Drops Sharply

[webfact]

Investors pacified as Thai bourse drops sharply
By English News

BANGKOK, June 6 - Thai stocks plunged 6.6 per cent since May 23 and fell below the psychological barrier of 1,500 points at midday today.

The Securities Exchange of Thailand (SET) index dropped 24.70 points or 1.62 per cent to close at 1,497.96 points at the end of morning session in light of a sharp Dow Jones' fall by over 200 points last night and investor concern with the possible US Federal. Reserve reduction of its bond purchases.

Most Asian stock markets were on the decline today.

Another factor was the continuous sales by foreign investors since June 1. Net sales by foreign investors were Bt12.62 billion during June 1-5 and Bt33.712 billion since early this year.

In an urgent news conference this morning, SET president Charamporn Jotikasthira said the Thai bourse dropped in tandem with global stock markets which felt the impact of capital movement and outflows.

The Thai stock has fallen 6.6 per cent since May 23 but it was worse in the Japanese stock exchange which suffered a 16 per cent plunge, he said.

He gave assurances that the fundamentals of the Thai stock market and listed companies remain solid with good returns, and that capital will definitely return. (MCOT online news).

-- TNA 2013-06-06

[up-country_sinclair]

He gave assurances that the fundamentals of the Thai stock market and listed companies remain solid with good returns, and that capital will definitely return.

What else is he going to say? Drain your accounts and bar the door?

[kblaze]

its all about QE. well not all. but mostly. Bernankes May22 comments were the only thing the already jittery markets needed to open the fear-gates. Japan and everyone had been on a tear, with abenomics and policy cuts juicing the markets, rising like crazy the past 6 months. Correction is normal, but the deal is now it is tied to fears of QE exit. The bad thing about this situation is that its all new territory, this type of easing and thus the exit of the easing has never been done before.

Its now a weird situation where bad economic news from the states will boost the markets. just watch.

[waza]

Rats leaving a sinking ship

[Payboy]

SET president Charamporn Jotikasthira

Why so moody today?

[kblaze]

SET president Charamporn Jotikasthira

Why so moody today?

[yoshiwara]

Some have complained that the SET has been over-priced for an entry into the market, so in the event of a substantial correction their opportunity might come earlier than expected.

[Joe Mamma]

Sounds like some bygone American politicians smoothing the citizens ruffled feathers.

[how241]

He gave assurances that the fundamentals of the Thai stock market and listed companies remain solid with good returns, and that capital will definitely return.

What else is he going to say? Drain your accounts and bar the door?

+1

[hawker9000]

Hmmm. 'Now the time to buy my baht for the next trip, or is there more bahtfall to come?

[thedivezone]

Hmmm. 'Now the time to buy my baht for the next trip, or is there more bahtfall to come?

More to come !

[David48]

The SET Index is down 4.24% or 64.81 points as I type.

I emailed my Thai Broker and her reply was ...

Dear Mr. David,

I checked the news and found that the market drops following the regional market.
I think that the market concerns about the downgrade Indonesia Market to
Underweight and they afraid that Thai market will be also downgraded too.
Moreover, the foreign investors still sell stock in Thai Market and keep cash.

Please trade stock carefully in this period.

I think it looks like the down trend.

Me thinks it's a buying opportunity ... but the time is when to buy.

Nobody rings a bell!

.

[kblaze]

The SET Index is down 4.24% or 64.81 points as I type.

I emailed my Thai Broker and her reply was ...

Dear Mr. David,

I checked the news and found that the market drops following the regional market.

I think that the market concerns about the downgrade Indonesia Market to

Underweight and they afraid that Thai market will be also downgraded too.

Moreover, the foreign investors still sell stock in Thai Market and keep cash.

Please trade stock carefully in this period.

I think it looks like the down trend.

Me thinks it's a buying opportunity ... but the time is when to buy.

Nobody rings a bell!

.

its just easiest to unwind positions in these "risk on" countries...so any fears of liquidity squeeze..thai, ind,phil, are the first to suffer as they had a large run up over the past 6 months

[waza]

China sneezes and Asia catches a cold.

Chinese manufacturing indexes showed small businesses struggling, sapping momentum in the economy and underscoring the need for the government to shift support away from larger, state-backed companies. #

LOS ANGELES (MarketWatch) — Economists seem to agree that China’s economy is slowing, but the real question appears to be whether the government is worried enough to offer some sort of policy response. #

(Reuters) - Risks are rising that China's economic growth will slide further in the second quarter after weekend data showed unexpected weakness in May trade and domestic activity struggling to pick up. #

A PRIVATE study of China's manufacturing industry has found the sector is contracting, putting it at odds with the government's official index. #

Thailand's economy contracted more than expected in January-March from the previous three months, which economists said raises the chances that this month will bring a rate cut the government wants. #

Thailand’s economy grew more slowly than expected in the first three months of this year, adding to a slew of recent disappointing data from other Asian economies that have cast a shadow over one of the world’s fastest-growing regions. #

Bangkok - Official data shows Thailand's economy shrank 2.2% in the three months to March from the previous quarter. This is the first contraction in more than a year due to a fall in manufacturing output. #

Me thinks there is worse to come, all Thailand's growth will be from debt.

Edited June 11, 2013 by waza

[David48]

Some interesting points above waza ... but I don't understand your '# quotes' ... as they simply redirect back to this OP

[waza]

Some interesting points above waza ... but I don't understand your '# quotes' ... as they simply redirect back to this OP

Ooops having trouble with citing the quotes, trying to work out how to do the short link, can anyone help?

[David48]

Sure ... always happy to help.

If it's a TVF quote simply click the #16 or that funny arrow head next to it and drop box will appear with the unique address for your quote.

If you just wish to refer to it, just copy and paste it will look like this ... http://www.thaivisa.com/forum/topic/644707-investors-pacified-as-thai-bourse-drops-sharply/?p=6497951

If how ever you want to make it look all fancy like grab a word or two, highlight them, click the symbol in the tool bar above which has a few grey links and a white cross inside a green circle and paste the quote address in it.

Then it will look like this ...

Can do the same with external links.

Hope that helps a bit ...

[waza]

Stock Exchange of Thailand President Charamporn Jotikasthira today urged investors not to panic, saying economic and corporate earnings growth in Southeast Asia’s second-biggest economy remains strong. The benchmark SET Index dropped to two-month low.

http://origin-www.bloomberg.com/news/2013-06-06/philippine-thai-exchanges-try-to-calm-investors-amid-stock-rout.html

Ok lets try again

Edited June 12, 2013 by waza

[David48]

This came through from the Broker this morning ...

The Trend

The index collapsed significantly in line with theTIP market as foreign investors settled down tosell in big cap shares, especially Bank and Energy shares. The selling pressure later hit medium to small shares, resulting in the index dropping to anew low and moving into the downtrend.

The Big Black Candlestick with heavy volumereflects the weakness of the market after theconfidence was destroyed. Moreover, the indexhas lacked strong buying to boost it. Thus, it will be difficult for the index to recover; with this pattern, it may flow down to the support area at1440-1420 points.

The index turned down quickly and eventually fellbelow the BB Bottom line, while the RSI isapproaching oversold territory. Therefore, the index may alternately rebound, offering the chance to sell and then hold cash; however, if there is a reversal signal, investors can return to buy again.

Recommendation: Hold cash.

Here

[yoshiwara]

Stock Exchange of Thailand President Charamporn Jotikasthira today urged investors not to panic, saying economic and corporate earnings growth in Southeast Asia’s second-biggest economy remains strong. The benchmark SET Index dropped to two-month low.

http://origin-www.bloomberg.com/news/2013-06-06/philippine-thai-exchanges-try-to-calm-investors-amid-stock-rout.html

Ok lets try again

'Don't Panic'. Those are awful words to hear from a stock exchange president.

And the Thai finance minister openly bickering with the BoT leading into the drop didn't help.

[yoshiwara]

This came through from the Broker this morning ...

The Trend

The index collapsed significantly in line with theTIP market as foreign investors settled down tosell in big cap shares, especially Bank and Energy shares. The selling pressure later hit medium to small shares, resulting in the index dropping to anew low and moving into the downtrend.

The Big Black Candlestick with heavy volumereflects the weakness of the market after theconfidence was destroyed. Moreover, the indexhas lacked strong buying to boost it. Thus, it will be difficult for the index to recover; with this pattern, it may flow down to the support area at1440-1420 points.

The index turned down quickly and eventually fellbelow the BB Bottom line, while the RSI isapproaching oversold territory. Therefore, the index may alternately rebound, offering the chance to sell and then hold cash; however, if there is a reversal signal, investors can return to buy again.

Recommendation: Hold cash.

Here

'The Big Black Candlestick with heavy volume'. I think your broker needs to drink a stiff scotch to stop the shakes.