SET clarifies with Finance Ministry after stocked plunged over 20 points

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SET clarifies with Finance Ministry after stocked plunged over 20 points
By Digital Content



BANGKOK, Dec 11 -- Stock Exchange of Thailand (SET) managers conferred with Minister of Finance Sommas Phasee today after the Thai bourse tumbled over 20 points earlier this morning, saying that the plunge was due to the declining global index. The agency also advised investors not to panic.

SET Chairman Sathit Limpongpan, together with SET President and committee member Kesara Manchusree called on Mr Sommai earlier today, to explain why the Thai stock exchange has dwindled by over 20 points during the first part of today, which also represented a continued decline since Tuesday.

The economic executives admitted that there are rumours about the reasons for the worsening change, and affirmed that one reason was the falling world stock index, reflected in the lowering global oil price.

SET further advised investors not to panic, as the domestic market could still handle larger fluctuations from the world stock market and that the Thai stock market has good foundations.

The executives gave assurances that the agency would continue to monitor the situation closely and would plan new measures to assist with the situation.

Moreover, there is a high tendency that registered companies' profits would continue to expand, as the country would also have over Bt250 billion in newly registered stocks in 2016.

SET Chairman Sathit said that Thailand would continue to see an improved domestic economy well into next year, and would like investors to use basic principles to help decide on buying stocks and not overreacting to the rumours circling around at the moment. (MCOT online news)


-- TNA 2014-12-11

[Mango Bob]

The agency also advised investors not to panic.

This means its time to panic.

[Dario]

"over 20 points" is misleading. Around 15:30 the SET recorded around minus 50 points. In the afternoon session it was always between minus 32 to minus 50 points. Turnover was extremely high with over 78 billion Baht.

[elgordo38]

"over 20 points" is misleading. Around 15:30 the SET recorded around minus 50 points. In the afternoon session it was always between minus 32 to minus 50 points. Turnover was extremely high with over 78 billion Baht.

Stock markets do drop they do not go straight up. If it went up straight as an arrow like the Set had been for months everybody would be piling in. The problem is people have been conditioned to straight up markets like a money party well be ready for the music to stop.

[sfokevin]

...

[NeverSure]

Looked at sector by sector it's a disaster. Of course the government is going to put a positive spin on it.

I can't figure out why low oil prices aren't a positive for Thailand overall. Why are they partly blaming this on low oil prices? This was a thrashing across the board.

I'll bet Putin is wearing a diaper today. Those net oil exporters are the ones hurt by $60 oil prices, especially countries like Russia and Saudi who feed their people with oil revenues. They need $100 oil to support their economies. For countries like Canada and the US, oil is a nice bonus, but not the underpinnings of the economy.

Thailand is going to blame everyone and everything in the world for its economic woes and it won't address its problems.

[klauskunkel]

It's Lady Gaga's fault. She tarnished Thailand's image last year, and look what happened!

[canman]

Down another 30 points so far this morning

[SantiSuk]

CP being discovered as having raised debt from nil to 6 x equity over the last 2-3 years (as reported in Thai national paper I cannot quote here) might have helped its decline!

On the face of it an extraordinary lack of corporate governance and maybe an extraoardinary lack of corporate reporting over that time period.

I have flirted with building up a portfolio of SET stocks within my overall equity portfolio. I'm feeling a bit less inclined to do so until I find out more on this case and what it implies for Thai investing. Poorly regulated markets are great in bull markets and disastrous when the music stops. Buyer beware.

[Long term investor and chartered accountant].

[indothai]

Keep an eye on the US news on the 1.1 trillion spending bill, if the bill passes it will buy some time.

I read in the news the other day that the Thai government is also going to do some spending to "help" the economy.

Old news, but the Thai auto industry isn't doing so good. I don't trust the data that I'm seeing/reading but I think the Thai auto industry has been in the down trend for the past year or so.

[JacChang]

I've been pro stock investments for a long time on this forum.

But even I am selling now.

Already reduced my portfolio by half today.

I will be back in around next year March to April.

[samran]

Looked at sector by sector it's a disaster. Of course the government is going to put a positive spin on it.

I can't figure out why low oil prices aren't a positive for Thailand overall. Why are they partly blaming this on low oil prices? This was a thrashing across the board.

I'll bet Putin is wearing a diaper today. Those net oil exporters are the ones hurt by $60 oil prices, especially countries like Russia and Saudi who feed their people with oil revenues. They need $100 oil to support their economies. For countries like Canada and the US, oil is a nice bonus, but not the underpinnings of the economy.

Thailand is going to blame everyone and everything in the world for its economic woes and it won't address its problems.

The Thai index is heavily weighted towards oil and gas stocks. PTT, the refineries as well as large energy players like Banpu.

Oil price and coal price down, so does SET.

I wonder how Thai airways has gone given it should benefit from lower fuel prices.

[Cake Monster]

" Bloomberg " are reporting that it is not only CP Group are not the only over-leveraged ( 6 times ) company in the SET listings.

Many more have 3+ times equity leverage, which is invoking an investor worry over a return to the 1997 SE Asia financial crisis.

[Asiantravel]

" Bloomberg " are reporting that it is not only CP Group are not the only over-leveraged ( 6 times ) company in the SET listings.

Many more have 3+ times equity leverage, which is invoking an investor worry over a return to the 1997 SE Asia financial crisis.

There were warnings back in April of last year………….. but many people scoffed at the idea

You would think at least the warnings issued from not one but three tycoons who lost their money in the last crisis would be enough for some to sit up and listen?

http://www.forbes.com/sites/jessecolombo/2013/11/04/thailands-bubble-economy-is-heading-for-a-1997-style-crash/

Edited December 14, 2014 by Asiantravel