Warning of stock market 'bubble'
- Published: 12 Oct 2012 at 11.49
- Online news: Local News
There are signs of a bubble forming in the Thai stock market due to the impact of the global economic crisis and the third round of quantitative easing measures implemented by the US Federal Reserve, a senior economist said on Friday.
Usara Wilaipitch, senior economist at Standard Chartered Bank in Bangkok, said the QE3 package, global economic recession and the eurozone debt crisis had caused foreign direct investment (FDI) to flow into capital markets in the Asian region, including Thailand.
The FDI inflow had substantially pushed up prices of shares on the Stock Exchange of Thailand (SET), without strong fundamental support, she said.
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