SET drops on political fears

Business > Economics

Published: 25/01/2011 at 10:23 AM
Newspaper section: News

Thai stocks have dropped 4.26% in the biggest one-day loss since late 2009 as investors signalled their concern over political risk and rising inflation in the region.

Analysts said there were serious worries of renewed political troubles yesterday after leaders of the People's Alliance for Democracy called for fresh rallies in Bangkok against the government.

The PAD is urging people to protest against Prime Minister Abhisit Vejjajiva's handling of the territorial dispute with Cambodia.

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justfacts
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Discussion 5 : 25/01/2011 at 09:53 PM5
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#3 you got it right ...the best time to buy is when there is blood on the streets....and another thing W.B said was be greedy when others are fearful ...and fearful when others are greedy. time and patience will get you well.....
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justfacts
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Discussion 4 : 25/01/2011 at 09:36 PM4
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bigjay #2 you must realize that the baht does not get stronger or weaker on its own....it floats according to the other major currencies...hence a strong dollar rally (as now) will make the baht move accordingly. People who complain of a strong baht need to blame their own government for running printing presses 24/7. In america QE1 and QE2 have destroted the dollar world wide thats why the baht appeared so strong and acually was ...ow for whatever reason the dollar is rallying and the baht gets weaker or stronger depending on what side you are on...
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Dingo69
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Discussion 3 : 25/01/2011 at 09:14 PM3
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From the BKK Post today:

"Foreign investors were the net sellers of four billion baht, while institutional investors were net sellers of 2.57 billion baht and proprietary investors were net sellers of 44.32 million baht, leaving individual investors the only party buying the stocks with net worth of 6.7 billion baht.

Nalin Chutchotitham, an analyst at Kasikornbank, said that the political concern seems to be the key reason driving the stock market yesterday to be much lower than its peers. It also has affected the baht, he added."

It is pretty obvious that internal political issues are driving this downturn in the SET.
And it is not just foreigners; "institutional" and "proprietary" investors are the Thai Gov't pension funds, and Thai banks trading on their own accounts. Apparently only local retail investors are the only ones buying.

BTW, I bought a bit yesterday on the crash, and just missed a bargain on something today. I'm not down on Thailand SET at all- just stating my opinion, so good luck and happy hunting to you all. :)
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BigJay
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Discussion 2 : 25/01/2011 at 12:01 PM2
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This is weird, normally the baht gets stronger during times protests and riots. It's actually a fact, the baht got stronger with the yellows a few years, ago, stronger with the red riots 6 -7 months ago. I'm confused.
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sharp
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Discussion 1 : 25/01/2011 at 07:25 AM1
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You people dont need a natural disaster like a Tsunami you can ruin your own country all on your own good luck sad sad people..
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SET drops on political fears | Bangkok Post: business