Foreigners Shut Set

[george]

Foreigners shut SET

BANGKOK: Recent low gains in the Thai stock market has caused foreign investors to pull stakes and take their money elsewhere - mainly Malaysia and Indonesia, according to fund managers.

Although fundamentals in the Thai economy remain strong, the lack of positive news from the Kingdom has taken the lustre off the Stock Exchange of Thailand.

The market was hammered again yesterday when Merrill Lynch said it was trimming allocations to Thailand to "market weight" from "overweight", citing little room for upside surprises. UBS Warburg, another investment banking firm, last week also announced a reduction in its Thai investment weighting.

The SET index closed down 1.54 per cent yesterday to 705.25, with overall stock prices down except in the banking sector, which rose 0.74 per cent. Turnover was Bt20.19 billion.

The Thai equity bourse had been sluggish since early last month. Foreign investors recorded net sales of Bt23.9 billion from the start of the year to February 27.

--The Nation 2004-03-02

[Nathan@Thaistocks]

Interesting at how these big international institutions are all slamming Thailand at once. They piqued the interest of the Thai SEC this week who did some digging and found that these big institutions like Morgan Stanley have been NET BUYERS on the SET recently, contrary to their supposedly negative research reports. An investigation is now under way. I don't have a source URL, but it was in the papers recently.

[randyksf]

Nathan

Yeah it is kind of funny that reports will buy side will say one thing and the sell side will say and do the reverse.

I for one think the set will settle back to 650 and might even reach the 600 level.

I agree that getting out of Thai holdings might be a good move seeing the environment. We all know the overall valuation of the Baht and with the current trade deficit it is only a matter of time b4 things start to get a little mad.

Take the some cash off the table and wait to see what happens. You might lose a point or three but its better than losing 30 on down side.

Whats your take on the direction of things?

[et33.com]

if you are a big timer

and run with the dogs

you will make your money

in the stock market

if you are a small timer

stay out of it

for it's a cunning game

of playing with your greed

heel thy words

run with the dogs

or stay out

there is no corner for the little ant

in the stock market

[netkoala]

Well yeah, it you buy low and sell high then Malaysia is looking good.

Indonesian does not look that great, but then I'm not a fund manager.

But speaking about buying low, is the FTSE below value now or what ?

The diff between this and the DJ must be staggering.

Phillipines is looking quite low.

Still it is moot that there is a breaking point yet.

The rise seems to be based on fundamentals, if only currency inflated ego's.

What was the news that brought these last two dips ?