Foreigners pull money out of Thai stocks and bonds

[webfact]

DOUBLE IMPACTS
Foreigners pull money out of Thai stocks and bonds
The Nation


A foreign tourist yesterday crosses a street where anti-government protesters at Democracy Monument. (EPA photo)

BANGKOK: -- Foreign investors' extended retreat has raised their net-sell position in the Thai stock market so far this month to Bt18.7 billion, amid the raging political chaos at home and rising volatility in the global financial market.

Yesterday alone, foreign investors sold Thai shares worth Bt10.2 billion against purchases of Bt5.9 billion, resulting in net sales of Bt4.28 billion. This followed the Bt3.3 billion in net sales on Tuesday and over Bt1 billion on Monday. The year-to-date net-sell has ballooned to Bt123.95 billion. Global funds have also pulled some investment from Thai equities this month.

The baht opened at 31.61 per US dollar before closing at 31.60. On Monday, it fell as far as 31.705, the weakest level since September 18. The baht has given up 1.5 per cent over the past two weeks.

Besides the prolonged political protests, and despite the call from the private sector for all demonstrations to end, the baht was also marching along with other Asian currencies as investors waited for a clearer sign on the beginning of "tapering" in the US.

New Federal Reserve chairwoman Janet Yellen will appear before US senators today to defend her nomination as Fed policy-makers debate whether the stimulus policy known as quantitative easing is still needed to shore up the world's largest economy.

The greenback rose against the Singaporean dollar, Taiwanese |dollar, South Korean won, Indian rupee and Philippine peso.

World Bank President Jim Yong Kim said on Tuesday in Washington that emerging markets are likely to see considerably more impact from higher US interest rates when the Fed pulls back from its massive monetary stimulus.

In May, then Fed chairman Bernanke shocked emerging markets when he raised the possibility that the US central bank could soon embark on a drawdown in its bond-buying programme. Thailand, Malaysia and Indonesia were particularly hard hit by capital outflows after Bernanke's comment.

"We think we've seen about a third of the overall increase in interest rates responding to that first announcement," Kim said.

"As US interest rates go up, what we're going to see is it will be even more difficult to get access to the kind of capital for infrastructure investment that developing economies need."

Prasarn Trairatvorakul, governor of the Bank of Thailand, insisted that there was no irregularity in capital outflows from the country. Movements in the stock and bond markets as well as in foreign exchange rates remained "orderly". There was no special concern that required action from the central bank.

"Overall, the condition is in order," he said, implying that all the proceeds from the dumping of Thai shares and bonds have not yet left the country.

Foreign investors are just keeping a close eye on the unfolding political situation.


-- The Nation 2013-11-14

[PaullyW]

Good. Pull it all out, and let's see if Thais continue with their unfounded arrogance.

[peterbkk9]

Good. Pull it all out, and let's see if Thais continue with their unfounded arrogance.

Exactly what I was thinking

[Thainy Tim]

It is not just the foreigners that are pulling their investment out of Thailand.

My Thai father in law has also done the same. Especially his millions he put into government bonds. He fears the government banks holding his money will go bust.

[casindonet]

Where's Mr. White Lies when you need him? As usual, Thailand is different will be his answer.

[Bender]

World Bank President Jim Yong Kim said on Tuesday in Washington that emerging markets are likely to see considerably more impact from higher US interest rates when the Fed pulls back from its massive monetary stimulus.

so when the FED will stop their stimulus? When all these greedy #&%% traders will take away their billionout of the country.

So some here will enjoy again 75 baht to the pound or 44 baht to the dollar? When???

ps: dont dream as it will never happen again

[draftvader]

Good. Pull it all out, and let's see if Thais continue with their unfounded arrogance.

I don't want to agree with the sentiment but I have to say that I have experienced so much lying (or ignorance) in business here (accounting, project figures, etc) that I wouldn't invest in certain countries in this region as I don't know when we'll discover the lies and see the value of shares plummet as accounts are reconciled. I have experienced numerous businesses that won't listen to conventional wisdom. I have one experience where a friend has listened and their business has seen steady accountable growth for 3 years now (he was at the point of quitting).

It looks like I agree, it is just the slightly poorly qualified "Thais" that disturbs me. Maybe "some Thai businesses" would have been better.

[Somtamnication]

The ship is starting to sink......

Money is the only thing Thais understand. Let's hope they understand what this means.

[moe666]

Good. Pull it all out, and let's see if Thais continue with their unfounded arrogance.

I don't want to agree with the sentiment but I have to say that I have experienced so much lying (or ignorance) in business here (accounting, project figures, etc) that I wouldn't invest in certain countries in this region as I don't know when we'll discover the lies and see the value of shares plummet as accounts are reconciled. I have experienced numerous businesses that won't listen to conventional wisdom. I have one experience where a friend has listened and their business has seen steady accountable growth for 3 years now (he was at the point of quitting).

It looks like I agree, it is just the slightly poorly qualified "Thais" that disturbs me. Maybe "some Thai businesses" would have been better.

I guess they couldn't be any worse than Madoff or the home mortage scam in 2008.

[moe666]

Most of the money came out when the fed first mentioned they would slow down there big bond buying scheme several months back.Off shore money has come back slowly but not at the levels before the easing announcement. The Thai Set is like any market buy the good quality companies and you should make money over time, I doubled my initial investment in the set in 3 years

[thailiketoo]

The ship is starting to sink......

Money is the only thing Thais understand. Let's hope they understand what this means.

http://www.bloomberg.com/quote/SET:IND

52-Week Range: 1,260.08 - 1,649.77

Day Range: 1,403.07 - 1,414.04

Year To Date: +3.94%

1-Year: +13.18%

Edited November 14, 2013 by thailiketoo

[jdinasia]

If we get a 20% drop I'll start buying again

[worgeordie]

Bloody foreigners,why can they not just leave their money here,

shut up,and leave us alone, we know what we are doing,most

likely what the government is thinking,even though they wont

say it.

regards Worgeordie

[Lupatria]

Where's Mr. White Lies when you need him? As usual, Thailand is different will be his answer.

Here we go:

Rate Topic 1 votes

Foreign investors sure Thailand will tide over political difficulties

Started by webfact, Today, 06:08

[Carl64]

i wonder who is buying all the stocks then?????

[BuffaloRescue]

What has a the photo of the tourist got to do with anything?

[mca]

A bit of light relief

http://notthenation.com/2013/04/stock-market-correction-delights-poorest-stupidest-expats/

[rebelplatoon]

Ah well, let's charge every tourist an extra 500B. That'll help. Especially with the upcoming political problems and the dark cloud over Prae Vihar.

[ridkun]

i wonder who is buying all the stocks then?????

Thais who know Thai politics, know what they are doing and know it's time to buy cheap stuff.

[harryfrompattaya]

i wonder who is buying all the stocks then?????

I beg to differ Le Roy and I are buying yes we sold when the set was about 1640 in May I told you many did not believe

Now is the time to buy

The SET is like getting money for free Buy Buy Buy Do not be afraid

And remember you can buy in your name not like at house

[TechnikaIII]

i wonder who is buying all the stocks then?????

Thaksin ?

[thhMan]

What has a the photo of the tourist got to do with anything?

Its part of the lazy attitude they posses... Couldn't be bothered to do their job properly...

[HeavyDrinker]

'Curse them pesky foreigners.....its ALWAYS their fault and never our fault for utterly failing to educate our kids in important World Issues and electing and supporting these ludicrous regimes...

[me313]

$$$ as political manipulation--an old game. Things will go back to "normal" once the agenda has been set...

[Card]

Good. Pull it all out, and let's see if Thais continue with their unfounded arrogance.

I don't want to agree with the sentiment but I have to say that I have experienced so much lying (or ignorance) in business here (accounting, project figures, etc) that I wouldn't invest in certain countries in this region as I don't know when we'll discover the lies and see the value of shares plummet as accounts are reconciled. I have experienced numerous businesses that won't listen to conventional wisdom. I have one experience where a friend has listened and their business has seen steady accountable growth for 3 years now (he was at the point of quitting).

It looks like I agree, it is just the slightly poorly qualified "Thais" that disturbs me. Maybe "some Thai businesses" would have been better.

I guess they couldn't be any worse than Madoff or the home mortage scam in 2008.

Or the Libor scam, rogue traders and money laundering.

[metisdead]

An off topic post has been removed.

[thaistocks]

But this is a & exaggerated if not outright nonsense news headline, I mean where are these global investors going to instead? The indebted no growth West, at similar valuation matrixes but then with very little or no dividends? Or washed out gold? Or 0-1% returns on US$, itself a currency with a questionable future. Thai listed companies overall have very little debt and clean balance sheets. Their earnings growth rates are double it not triple those of the developed countries and corporate income taxes here have just been cut 1/3 over the past 2 years. So profit margins are on the up, overall.

Political squabbling and commotion is the norm here for decades and does not affect much or for long, as is shown in the long past. The just past events if anything are positive as they show the masses won't put up with pardon's for past ill behavior. Ha its a buying opportunity, watch and see and learn.

[diggledunc]

There was an interesting article last week posted by somebody that had a link to Forbes magazine. The title of the post was something like the bubble bursting. Fascinating reading.

Apologies to the kind poster whose name I have forgotten.

If you can find it, it shows so much statistical information to back up the hypothesis put forward and opinion. It also gave opinions of three Thai businessmen caught up in the 1997 debacle. For expats with currency coming in it pointed the way forward for exchange rates and really pulled the rug from under Yingluck's populist policies.

[johnopolo]

The really stupid people around here are those playing the Thai Bashing game in these forums (and elsewhere). Every communication you make on the Internet and via your mobile phone is intercepted and analysed. They know who you are and where you live and your passport number too. It's not only the NSA that's doing it. You are the real morons!

[metisdead]

A post in violation of this forum rule has been removed:

31) Bangkok Post do not allow quotes from their news articles or other material to appear on Thaivisa.com. Neither do they allow links to their publications. Posts from members containing quotes from or links to Bangkok Post publications will be deleted from the forum. Please note that this is a decision by the Bangkok Post, not by Thaivisa.com and any complaints or other issues concerning this rule should be directed to them. Quotes from and links to Phuketwan are also not allowed and will also be removed. In special cases forum Administrators or the news team may use these sources.