Bank of Thailand chief: Thai economy remains sound

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BANGKOK, Aug 21 – Thailand’s central bank chief has given assurances that the country’s economy was not in recession and would spring back in the second half of the year.

Prasarn Trairatvorakul, governor of the Bank of Thailand (BoT), said the overall economy, especially in Asia, will slow down in tandem with the global downturn but Thailand should achieve its economic forecast in the next two quarters.

The Thai bourse fell in the last two days in the direction of the regional stock market, particularly among the TIP group which includes Thailand, Indonesia and the Philippines. Indonesia has suffered a budget deficit in the last two quarters.

The Thai stock market closed at 1,370.86 points yesterday, down 27.62 points or 1.98 per cent, with a Bt58.041 billion purchase volume.

During the day, the SET index plunged to the lowest in two months at 1,353.02 or 45.46 points lower.

Kitpon Pripisankit, an analyst of Kasikorn Securities Plc, said foreign investors have reduced their portfolios in the Thai and Asian stock markets due to jitters about the US Federal Reserve’s potential stimulus tapering.

The Federal Reserve will decide on stimulus measures through quantitative easing (QE) in its meeting on September 17-18.

Thailand has seen outflows of foreign capital at more than Bt80 billion since early this year while the Thai stock market will remain volatile until late next month, he said.

He said the Thai bourse could slip further to the 1,300 resistance point but it could surge up in the fourth quarter and reach 1,600 points by the end of the year.