Investors pacified as Thai bourse drops sharply

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BANGKOK, June 6 – Thai stocks plunged 6.6 per cent since May 23 and fell below the psychological barrier of 1,500 points at midday today.

The Securities Exchange of Thailand (SET) index dropped 24.70 points or 1.62 per cent to close at 1,497.96 points at the end of morning session  in light of a sharp Dow Jones’ fall by over 200 points last night and investor concern with the possible US Federal Reserve reduction of its bond purchases.

Most Asian stock markets were on the decline today.

Another factor was the continuous sales by foreign investors since June 1. Net sales by foreign investors were Bt12.62 billion during June 1-5 and Bt33.712 billion since early this year.

In an urgent news conference this morning, SET president Charamporn Jotikasthira said the Thai bourse dropped in tandem with global stock markets which felt the impact of capital movement and outflows.

The Thai stock has fallen 6.6 per cent since May 23 but it was worse in the Japanese stock exchange which suffered a 16 per cent plunge, he said.

He gave assurances that the fundamentals of the Thai stock market and listed companies remain solid with good returns, and that capital will definitely return.