No measure needed for stock market
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Thailand's capital market authorities insist that there is no need for support measures to shore up the Thai stock market, despite days of loss which plunged the index to 1,294.30 points today.
After the special discussion with the Stock Exchange of Thailand, Securities and Exchange Commission Secretary General Vorapol Socatiyanurak said that the market fall was in line with regional movement. And the plunge was attributable to the tapering of the US quantitative easing, which sparked sell-off and outflows.
He said that there was also a consensus that Thailand's economic fundamentals remain strong, with stable fiscal and monetary positions. Listed companies also managed to show impressive earnings growth, with such a low debt-to-equity ratio, at only 1.27 times on average.
"The phenomenon is temporary. Foreign investors have sold a sizeable portion of their investment in Thai shares. In time, they will return, due to the Thai economic strengths," he said.
SET President Charamporn Jotikasthira added that there is no need for a any support measure. Regarding to the QE tapering, he said this indicates an improvement in the global economy which would in turn benefit Thailand's exports as well as tourism.
"Despite the outflows of over Bt110 billion, the sell-off has been slowing down. Regionally, the Thai market still remains the most attractive in terms of liquidity, reflecing through the highest daily turnover," he said.
Foreign investors returned net-buyers of Thai shares on Friday, with the net purchases of Bt60.23 million.
However, throughout August, foreign net-sells were as high as Bt39.94 billion, according to the Stock Exchange of Thailand's data.
Foreign net-sells in the first eight months reached Bt116 billion.
Individual investors and local institutional investors were net-buyers during the period, with net-buy transactions of Bt55.6 billion and Bt71.3 billion, respectively.
