No need for stock-support fund

 

Finance Permanent Secretary Areepong Bhoocha-oom said that as long as the Thai economic fundamentals stay strong, foreign capital will flow back to the stock market when the index has fallen to some extent. He believed that the outflows would be temporary. 

"Thailand's medium-term economic outlook remains strong, compared to that of other countries. Capital inflows will resume," he said.

SET President Charamporn Jotikasthira said that there is no need for such support fund. 

"The index has plunged mainly on external factors. The outflows are not yet at a critical level like in 2008, when net outflows reached Bt140 billion," he said.

Paiboon Nalinthrangkurn, CEO of TISCO Securities, said that the situation now is different from 2008. Then, daily turnover of the Thai stock market was below Bt6 billion, against over Bt50 billion now. He also noted that the Thai market is not alone to suffer the massive outflows. Moreover, the fund would distort market mechanism, which could lead to negative repercussions. 

"There is no necessity for such fund. We have to take into account the situation in other countries. Some suffer more than us. We should not distort market mechanism and should brace for market correction. The picture would be clearer in the next few months," he said.