SET players advised on investment decision as US-Iran tensions rise , SET plunges 1.6 per cent
Investors are taking into accounts development in the Middle East as hostility escalates between US and Iran, said Pakorn Peetathawatchai, president of the Stock Exchange of Thailand.
Tensions in the Middle East have adversely affected global stock trading, with some markets plunging by 2 per cent on one-day trade, said Pakorn. He made the comment after Iran retaliated US strike by firing dozen of missiles into US military bases in Iraq on Wednesday morning (January 8).
“Investors should assess how the situation affects each market, or how it affects different companies and businesses,” he said, adding that the impact are not identical.
The SET index fell on Wednesday(January 8) with investors opting to hold more cash or investing in low-risk assets. However, high liquidity in the Thai bourse combined with multiple investor groups, provide resilience. When the index fall at some points, it usually rebound quickly, he said.
“Investors must closely follow the news, assess whether the index has over- reacted before making a decision,” he advised. It is very hard to predict how the situation will evolve or how long it will last, he said.
However, Pakorn was optimistic about the local economy, saying that it remains sound while listed firms could still make a profit. In the event of a crisis, investors could still find investment opportunity in high return or profitable stocks. The SET is collaborating with the Bank of Thailand and the Securities and Exchange Commission (SEC) to gather information on the situation in the Middle East.
He reassured investors that the SET’s trading system could handle high trade volume. The SET index ended Wednesday (January 8) at 1,559.27, plunging 25.96 points or 1.64 per cent from Tuesday's close, with a trade volume of Bt65 billion.
