Outflow of funds over, says Thai FM Kittiratt

[webfact]

Outflow of funds over, says Kittiratt
Sarun Kijvasin,
Varin Trino
The Nation

Minister expects market to settle; BOT chief says foreign investors lack information

BANGKOK: -- The flow of "hot money" out of the country is almost over, which should calm the stock market, according to the finance minister, while the Bank of Thailand governor has urged authorities to conduct roadshows to improve foreign investors' understanding of emerging markets' economic fundamentals.

Kittiratt Na-Ranong, deputy prime minister and finance minister, said yesterday that most of the capital remaining in the Thai economy was for long-term investment, so market volatility should ease. "Falling stock prices should attract those who want to invest more. Long-term investors may be interested," Kittiratt said.

He was speaking at the sideline of "Thailand Focus 2013: Connecting to New Investment Frontiers", a forum organised by the Stock Exchange of Thailand, Phatra Securities and Bank of America Merrill Lynch.

Since the US Federal Reserve chairman raised the possibility that monetary stimulus (QE) would be tapered, almost all of the "hot money" that poured into Thailand recently has flowed out again.

BOT Governor Prasarn Trairatvorakul, speaking at the sideline of the same event, said the risk to Thailand's credit rating posed by capital flows could be reduced if foreign investors had more knowledge about emerging markets' economic fundamentals. The Thai central bank uses its "Thailand Focus" seminars to improve such knowledge, drawing a large number of foreign participants to the events. Thailand's fundamentals remain sound with high international reserves, a strong financial-institution system and satisfactory current account balance, he said.

Given low export growth and declining imports, the BOT forecasts a relatively balanced current account, or a slight deficit, throughout 2013. This would be unlikely to affect the country's fundamentals or exchange rate, the governor said. "What we'd like to see is to have them [foreign investors] analyse and understand how each country's economy functions," Prasarn said.

Thailand has seen some capital flowing out, but there were no problems arising from this, Prasarn said, adding that the current exchange rate was relatively flexible.

He said the central bank had tools at its disposal should the baht move too fast.

"Capital outflows could be short-term," Prasarn said, explaining that foreign-capital outflows followed economic recoveries in the United States, Europe and Japan.

Vorapol Socatiyanurak, secretary-general of the Securities and Exchange Commission (SEC), said the watchdog was not worried too much about capital outflows, and consistently monitored the situation.

Recently, most foreign investors' net sales of Thai stocks came from "hot money" invested in Thailand after the Fed started its monthly bond purchases under QE in 2011, Vorapol said.

At present, about 143 listed companies have share prices lower than book value, he said, indicating an opportunity for investment.

The SEC and the Stock Exchange of Thailand will hold their next monthly meeting to assess the Thai stock market's situation tomorrow.

Association of Securities Companies head Patteera Dilokrungteerapop said investors' concerns over the crisis in Syria were partially to blame for the SET Index's fall, while expressing confidence over the soundness of Thai economic fundamentals.

Thiti Tantikulanan, executive chairman at Kasikorn Securities, however, expected consistent volatility for the stock market, bond market and the Thai currency for the next one to two months due to the capital flowing out of the region. The baht is expected to depreciate to 32-32.5 per US dollar within one month.

After holding discussions with foreign investors, Anuwat Ruamsuke, assistant managing director at Phatra Securities, said most of them were concerned about the Thai economic slowdown, the possibility that the government's Bt2-trillion infrastructure mega-project could be delayed, and the political situation.

"There should be no concern over outflows of Bt100 billion in capital, as it is a short-term pattern," Anuwat said.

Foreign investment remains high at about three-fourths of total free floats, which account for 45 per cent of the market. Foreign capital will stay as long as the Thai economy does not enter a genuine recession, he said.


-- The Nation 2013-08-29

[Utley]

"After holding discussions with foreign investors, Anuwat Ruamsuke, assistant managing director at Phatra Securities, said most of them were concerned about the Thai economic slowdown, the possibility that the government's Bt2-trillion infrastructure mega-project could be delayed, and the political situation."

"There should be no concern over outflows of Bt100 billion in capital, as it is a short-term pattern," Anuwat said."

Yes, a short term pattern that will be repeated over and over and over and over again - as long as there are votes to be bought and tea money to be made.

[Halion]

More and more little white lies. I wounder just how much of the Shiniwatra clan spoils have been moved.

[waza]

"Minister expects market to settle; BOT chief says foreign investors lack information"

Haha silly farrangs

"Kittiratt Na-Ranong, deputy prime minister and finance minister, said yesterday that most of the capital remaining in the Thai economy was for long-term investment, so market volatility should ease."

Ex-pats investments and bank accounts

"Given low export growth and declining imports, the BOT forecasts a relatively balanced current account, or a slight deficit, throughout 2013. This would be unlikely to affect the country's fundamentals or exchange rate, the governor said. "

Is this guy reading the papers?

"There should be no concern over outflows of Bt100 billion in capital, as it is a short-term pattern," Anuwat said."

It should last til the end of this governments term

Edited August 29, 2013 by waza

[up-country_sinclair]

Kittiratt says the outflow is over? Well, then I'm all in.

What could go wrong?

[chiang mai]

His story line is not that different from the one being spun in several countries right now, we're over the worst and it's all plain sailing from here on - how gullible you are will determine the extent to which you believe it.

[indyuk]

Khun Kitterat's 'a wing and a prayer philosophy' continues to fool him.

[worgeordie]

I thought it had just started, and now its over, oh well!

regards Worgeordie

[robertson468]

I think most Fund Managers have been in this business for many more years than this Gentleman and clearly have a far better appreciation of the markets. I do wish that Members of the present Thai Government would think before they speak and not imply everyone else are inexperienced idiots, because sadly, by doing this, this is what they look like. PTP motto needs to be, "engage brain before mouth", then stop looking as if your head is in the sand.

[bander]

Kittiratt says the outflow is over? Well, then I'm all in.

What could go wrong? alt=coffee1.gif>

When Kittiratt says the outflow is over means it has just started, tell me lies tell me sweet little lies......

[Gomyway]

It looks like India is just on the way to collapse and to follow the international analysts Indonesia should be the number two followed by ???

[Naam]

It looks like India is just on the way to collapse and to follow the international analysts Indonesia should be the number two followed by ???

it looks like you should use reading glasses when reading or watching news and then refrain from making wild assumptions and/or asking irrelevant questions.

[billd766]

It ain't over until the fat lady sings.

[Chao Lao Beach]

http://www.abc.net.au/news/2013-08-29/weathering-the-asian-mini-crisis-the-cash-crash/4923642