BANGKOK, 22 Dec 2014 – 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.