Thai Stock Market Bullish On Election News

[george]

Thai stock market bullish on election news

BANGKOK: -- Thailand's stock market rebounded Friday with news that the country's months-long political log-jam is giving way to new elections in October.

Given a big shot in the arm with the announcement that a Royal endorsement have been given of the caretaker government-requested Royal Decree designating a new general election on October 15, Thailand's stock market rebounded with a nearly 17 per cent increase in trading with the volume of shares traded reaching Bt2.2 billion in a single day.

News that His Majesty the King has signed a Royal Decree for the general election to proceed on October 15 lifted the stock market out of its protracted slump, as the political crisis has dampened investor confidence for months.

Trading at the Stock Exchange of Thailand peaked at 688 when the news was first heard, up nearly 19 per cent from the previous day as investors chased profitable stocks. Trading closed at 686 points however, up nearly 17 per cent from Thursday.

The volume of trade totaled Bt21.8 billion (nearly US$575 million) at closing.

Thailand's Market for Alternative Investment, where medium-sized cap firms are listed, also benefited from the news that cleared away the political cloud to close at 155, with its trading volume at Bt11.54 million.

A TSEC Securities vice president said the Royal Decree gave the much-hoped for boost to Thai market sentiments following a long bearish spell.

He also expected foreign investors to be more confident now of Thailand's political situation and that this bearish sentiment should last for at least another week as there are many attractive stocks at

competitive pricing.

Despite the positive outlook, he urged investors to keep close watch on global energy prices and US interest rates trend as these two factors heavily influence global capital movement.

--TNA 2006-07-21

[george]

King endorses election decree

His Majesty endorses decree Thursday; Democrat and Chat Thai pledges to contest election; Pnet calls for removal of EC commissioners

BANGKOK: -- His Majesty the King wants to see the next election to be clean and fair and want the country to live at peace as soon as possible, Government Spokesman Surapong Suebwonglee said Friday.

Surapong said His Majesty states the wish by writing down a note on the royal decree to set the election day, which His Majesty signed on Thursday.

It was the first time that His Majesty wrote down a note on such a royal decree.

The decree was announced by the Cabinet Secretariat Friday and was published in the Royal Gazette on the same day.

Rongphol Charoenphanthu, acting Cabinet secretary-general, said the decree will take effect on August 24 to set October 15 as the election date.

Commenting on the issuance of the royal decree, caretaker Prime Minister Thaksin Shinawatra said it was now time for all sides to try to reach reconciliation.

Thaksin said he would also invite the international PollWatch body to observe the October 15 election.

The prime minister said he hoped the Supreme Court would nominate candidates for the Senate to select two more Election Commission members so that the EC would have full bench before the election day.

Democrat Party leader Abhisit Vejjajiva said his party would definitely contest the October 15 election but his party still called on the three EC commissioners to resign.

Chat Thai Party deputy leader Somsak Prissananthakul said his party would contest the October 15 election but he wanted to have a new EC to hold the election.

Meanwhile, the chairman of the People's Network for Election (Pnet) Friday called on the Criminal Court to remove the three Election Commissioners by convicting them in malfeasance and sending them to jail.

Saiyudh Kerdphol said the people do not trust the current EC to hold the next election so the Criminal Court should take drastic action against the three commissioners so that Supreme Court could nominate new EC candidates.

The commissioners are facing malfeasance charges related to the April 2 election.

They will automatically lose their status if they are jailed even one day.

--The Nation 2006-07-21