War against Syria may not lead to a plunge
Play
The US attack against Syria may not lead to a plunge in global stock markets, said Asia Plus Securities, referring to the episodes witnessed during the attack against Iraq.
In a research note, it said that global stock markets should rise if there is no war, but it is uncertain if it would react negatively in light of a war.
In 2003, the US launched the attack against Iraq, without waiting for the United Nations' nuclear investigation. Then, seven days ahead of the attack on March 20, the Wall Street gained 9.45 per cent and it also gained further 60 days after the attack. Seven days after the attack, the Thai market then also rose 0.95 per cen. It also gainsed another 2.8 per cent, 7.8 per cent and 23.3 per cent - 14, 30 and 60 days after that, respectively.
All eyes are now whether the US Congress would approve the attack, while the UN's team tasked to prove chemical weapon deployment in Syria expects to take at least a few weeks to finish the report.
The Stock Exchange of Thailand gained on Monday, rising above 1,300 points on good news from China. Asian stocks also rose today as China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery.
At noon, the SET index was at 1,304 points, up 9.70 points from Friday or 0.75 per cent, on turnover of Bt14 billion.
The Thai stock market has been under pressure from foreign sell-off. As of end-August, foreign net-sells this year have been tuned at Bt116 billion, including Bt39.9 billion in August alone.
