SET leads regional fall
The Stock Exchange of Thailand index showed the biggest loss in Asia, following the sharp falls in New York on Friday triggered by a series of bad news.
Stocks plunged around Asia, with the Thai market leading the losses, down 5.12 per cent. Hong Kong was down 4.38 per cent. The benchmark Hang Seng Index lost 770.26 points to end at 16,822.15 -- its lowest close since May 2009.
The SET index at midday lost 40.98 points or 4.47 per cent, to 875.23 points, on turnover of Bt13 billion. At the end, it plunged further to lose a total of 46.90 points to end the day at 869.31 pionts on turnover of Bt26.6 billion. The SET index is at a new one-year low. In August last year, the index was 860 points.
In terms of percentage loss, this is the second biggest this year following a 5.65 per cent loss on Sept 26.
Dow Jones Industrial Index on Friday lost 210 points to 10,913.
Despite Germany's commitment to boost the European Financial Stability Facility (EFSF), there are fears that the facility's strength would be insufficient if Italy and Spain are dragged down.
SET President Charamporn Jotikasthira said that the SET plunge today was in line with global movements. He urged investors to closely monitor news report, as the stock market is heavily sensitive.
Sombat Narawutthichai, secretary-general of Securities Analysts Association, said that Thailand's economy remains strong to cushion any negative impacts. However, he admitted that in the current situation, it is harder to make short-term profits.
The association is accumulating views on the euro zone impacts on the Thai exchange.
"The backdrop has been a series of bad news since early August, from the major global economies," said Parson Singha, Chief Markets Strategist, Global Markets Department, HSBC Thailand.
In his article to be publised by The Nation tomorrow, he said that In Europe, Greece has been in the headlines, with an ongoing drama on whether it is doing enough to reduce debt. However, there is a wider and more important issue – whether or not the Eurozone can cope with potential financial problems at larger economies such as Italy and Spain. "Resolving that crisis of confidence will take a lot of tough steps… but so far, little progress has been made."
