SET chairman views fuel price drop as opportunity in crisis

[webfact]

SET chairman views fuel price drop as opportunity in crisis

BANGKOK, 22 Dec 2014 (NNT) - Chairman of the Stock Exchange of Thailand (SET) Satit Limpongpan has brushed off concerns over a drop in the SET index due to the reduced prices of fuel, expressing his confidence that the oil price drop would benefit Thailand as the nation relies heavily on fuel imports.

Satit made the comment at a public discussion organized by the SET on the current drops in both the local stock market and petrol prices. He pointed out that despite the index’s plunge, Thailand’s average return remains higher than those in several other nations.

He explained that since Thailand imports a large quantity of fuel, the fall in fuel prices would save foreign exchange, adding that the event also gave the country a chance to correct the domestic fuel price to accurately reflect the global oil prices. Mr. Satit continued that undoubtedly the fuel price decline would reduce costs in the nation’s transportation, production and other related sectors.

Meanwhile, Niwet Hemwa-shirawarakan, an investor, viewed that more and more Thais were showing great interests in stocks investment, and the recent plunge in stock index might cause discomfort among the investors; however, he urged them not to panic and dismiss their stocks too quickly.

He reminded that stock trading is a long-term investment and price fluctuations are normal. The matter is in fact a challenge to investors. Mr. Niwet nonetheless was confident that the nation’s economy would continue to recover in the coming months.


-- NNT 2014-12-22

[jaltsc]

"...expressing his confidence that the oil price drop would benefit Thailand as the nation..."

I didn't realize "Passing savings onto customers" was a Thai business concept.

[RubbaJohnny]

So fare hikes,taxi rail bus etc will be reversed?

[Pomthai]

Once the fuel surcharges are dropped from major airline, I'll start to believe that fuel prices may stick long enough to make a significant impact.

[thesetat2013]

SET should stop contradicting the GOVs generous gift of reduced fuel prices for the New year as stated a couple weeks ago here. Heeheee

[NeverSure]

"...a drop in the SET index due to the reduced prices of fuel."

Huh?

[JOC]

"...a drop in the SET index due to the reduced prices of fuel."

Huh?

Because fuel-related stocks are more than 40% of the total SET value.

So it actually makes sense!!

PTT and their many daughters are real heavyweights!!

[webfact]

BIZ BUZZ
How Pridiyathorn arrested the SET slump
The Nation

BANGKOK: -- When the Thai stock index slumped nearly 10 per cent, or 140 points, last Monday, Deputy Prime Minister MR Pridiyathorn Devakula was with Prime Minister General Prayut Chan-o-cha and other economic ministers, attending an important meeting of the National Energy Policy Committee's to consider a big reduction in oil prices.

Fortunately, Energy Minister Narongchai Akrasanee was alerted by his friends that the "Black Monday" was caused by some rumours, and he quickly informed Pridiyathorn about that.

The deputy PM waited for the right moment to leave the NEPC meeting and quickly called some of his friends to tell them that the rumours were totally groundless. And this explained why the SET bounced back to close at only 36.46 points lower than the previous trading day figure.

We don't know who were among those persons who received the important phone calls from Pridiyathorn that day. But it seems to indicate the deputy PM's powerful network with investors. Some may argue that Pridiyathorn should have issued a press statement to make sure that everyone was informed of the correct information, at the same time. However, we can sympathise with Pridiyathorn considering the urgency of the issue, and the sensitivity of the rumours.

PLEA TO CUT ELECTRICITY PRICE

The government has come under growing pressure from the public, who are complaining that electricity prices continue to be high despite the fall in oil prices in the past few months. Somsak Paneetatyasai, president of Thai Shrimp Association, argued that when the price of electricity has been increased in the past when there was a rise in oil prices, the electricity price should be lowered when the price of oil has slumped.

Voicing a similar opinion, Salinla Seehaphan, corporate affairs director of Tesco Lotus, said she would like to see lower electricity price, as it is one of the major cost burdens on people. She said as oil price has gone down, electricity price should also be reduced so that consumers would have more money and higher purchasing power.

Energy Minister Narongchai Akrasanee wrote on his Facebook page that he was aware of this sentiment and the electricity prices would certainly be reduced at its quarterly review next month.

Narongchai also broke down the costs of fuel adjustment electricity tariff, and pointed to the very high cost of renewable energy - specifically solar energy, which costs Bt10.93 per kilowatt-hour, and wind energy that costs Bt6.43/ kWh - that contribute to the high Ft tariff currently at Bt3.06/kWh.

"People who urge use of more renewable energy, please be informed of the costs as well. Now we're trying to reduce the subsidy, as the technology has improved and the costs are getting better," he said.

Narongchai said he supported renewable energy but if it was too expensive and only helped create "a new-generation of energy billionaires", it would not be fair to the public.

Contributed by Pichaya Changsorn and Petchanet Pratruangkrai

Source: http://www.nationmultimedia.com/business/How-Pridiyathorn-arrested-the-SET-slump-30250371.html

-- The Nation 2014-12-22

[Thai at Heart]

Thailand, where what is universally good for the population is seen as a crisis because it effects a stock portfolio.

Amazing

[chotthee]

I think the SET chairman called to order the SET index to move up instead of down.

One possible way of doing it is rejig the trading software to eject all sell orders; execute only buys orders.

[JacChang]

"Somsak Paneetatyasai, president of Thai Shrimp Association, argued that when the price of electricity has been increased in the past when there was a rise in oil prices, the electricity price should be lowered when the price of oil has slumped."

Mr. Somchai Petchawatana, president of the Thai Cockroach Association, explained that the rise in electricity costs was because electricity is a form of energy in direct competition to oil, so in the past if the oil price goes up, so does electricity, because there is demand for it as an alternative. Now that the costs of oil has gone down, doesn't mean the cost of production of the electricity goes down at the same rate.

[JOC]

>>But it seems to indicate the deputy PM's powerful network with investors. Some may argue that Pridiyathorn should have issued a press statement to make sure that everyone was informed of the correct information, at the same time. However, we can sympathise with Pridiyathorn considering the urgency of the issue, and the sensitivity of the rumours.<< Quote

In most other countries that would be considered insider trading and a criminal offense!! But here it is called "powerful network with investors", when the Finance Minister share his knowledge with old friends!!

Some things never change!!

[sawati]

SET of Thailand...the casino of a few!!!

[tonbridgebrit]

"...a drop in the SET index due to the reduced prices of fuel."

Huh?

Because fuel-related stocks are more than 40% of the total SET value.

So it actually makes sense!!

PTT and their many daughters are real heavyweights!!

Yes. And in Britain, the FTSE 100 is heavily influenced by Shell and BP. If the world oil price carries on falling, well, Shell and BP will see their share prices falling. And the FTSE 100 will fall with it.

Hey everybody, we need to tell OPEC to cut production to boost the world oil price. Sanctions against Iran might reduce Iranian oil on the markets, don't let others replace Iran's oil sales. Hopefully, the world oil price will go back to $110 USD, or $120.

And large parts of America's shale oil will be non-profitable at the present $62 USD. Yes, a high oil price, that's what we all need. Not just Thailand, but others as well.