Share prices rebound as foreign investors return
By WICHIT CHAITRONG
THE NATION
Published on October 17, 2009
Foreign investors familiar with local politics still have high confidence in Thailand despite politically
sensitive rumours that have hit the stock market in recent days.
Share prices yesterday gained more than 3 per cent to close at 717.12 points on turnover of Bt29 billion
after losing heavily on Wednesday and Thursday.
"Thais can manage their politics because they have experience, " said Liam Ayudhkij, group chairman
of the Property Care Services (
Thailand), an Irish businessman who has lived in the Kingdom for 46 years.
Ayudhkij told The Nation on the sidelines of the Asia-Pacific
Ireland Business Forum at the Dusit Thani Hotel
in
Bangkok that he had lived through several dictatorial regimes, including that of Field Marshal
Sarit Thanarat (1957-63).
Irish-Thai Chamber of Commerce president Jerome Kelly expressed a similar view, saying the present
government's stability had been "pretty good" these past 10 months.
Asked how he would describe the Thai situation to foreign friends, Kelly said: "
Thailand is just fine."
Finance Minister Korn Chatikavanij said the stock market's correction had helped restrain the baht
from further appreciation.
Kelly said that was good for exporters. It was a normal investment practice in the equity market for
foreign investors to take profits from previous stock-index rises and local-currency appreciation.
He also suggested local investors look at the economic fundamentals and urged them not to panic.
Prime Minister Abhisit Vejjajiva said the government was investigating the source of the rumours.
He warned investors to be cautious when considering information and urged the Stock Exchange
of
Thailand (SET) and the Securities and Exchange Commission (SEC) to examine whether anyone
was creating problems in the stock market. He said the authorities should determine whether
spreading rumours was against the law.
Abhisit said that whether the government took legal action would depend on how much trading
had been affected by any wrongdoing.
SEC secretary-general Thirachai Phuvanatnaranubala said police had asked him for information
on the source of the rumours. He said Wednesday and Thursday's stock transactions had been
made by various investors "in a diversifying manner", which was not unusual.
Asked whether US news-service provider Bloomberg could have exacerbated the situation by
reporting the rumours, Thirachai dismissed such speculation, saying it had published news about
the rumours after the stocks had already fallen.
Meanwhile, he said the Capital Market Development Committee yesterday agreed to the SET's
demutualisation plan and would soon set up a special committee to oversee the process.
A plan will soon be submitted for Cabinet approval.
SET president Patareeya Benjapholchai said she hoped the equity bourse's total market
capitalisation would exceed 100 per cent of gross domestic product within five years
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- - The Nation 2009/10/17
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