Despite the slew of negative articles regarding the country's troubled aviation industry published since last year, positive media reports about debt-ridden Thai Airways International Plc (THAI) have emerged over the past fortnight.
According to two reports, which led to a spike in THAI's share price, the loss-making flag carrier made a profit in the fourth quarter of last year while there was apparently a possibility of it buying a stake in the company that owns the low-cost carrier Thai AirAsia. Both these reports came from unnamed sources.
On Feb 16, the day a stock-focused daily reported it was anticipating a lower-than-expected net loss for THAI in 2015, the airline's share price surged by 20.24% to close at 10.10 baht. What the carrier did on that day was to submit a letter to the Stock Exchange of Thailand (SET) saying the company was not the source of this information.
More good news came on Feb 19 when M2F and Post Today -- the two sister dailies of the Bangkok Post, quoted an unnamed source as saying Deputy Prime Minister Somkid Jatusripitak had floated a "brilliant" idea at a meeting with tourism promotion agencies regarding THAI, its budget carrier Thai Smile, and its low-cost rival Thai AirAsia, that the national carrier should buy a 20% stake in Thai AirAsia.
A day later Tassapon Bijleveld, CEO of Asia Aviation Plc (AAV), the firm that owns Thai AirAsia, confirmed the report and told the Bangkok Post he planned to meet THAI chief Charamporn Jotikasthira so the idea could materialise.
On Monday, the Bangkok Post and other newspapers quoted an unnamed company official as saying that THAI posted a net profit of about 4 billion baht in the fourth quarter of last year, narrowing its 2015 net loss to about 14 billion, compared with a 15.6 billion baht net loss in 2014. THAI posted a net loss of 18.1 billion baht for the first nine months of last year.
When the bourse resumed trading on Tuesday after the long weekend, investors digested the positive news and THAI shares closed 9.17% higher from Friday. On Wednesday, the stock price rose another 4.2% to close at 12.40 baht, a 47.61% jump in seven trading days.
Amid the price rally on speculation and unofficial reports, the airline officially told the public nothing apart from the contents of its Feb 16 letter. The carrier is sticking to its original plan of having its board convene on Monday to announce its 2015 operating results as well as its targets and direction for 2016.
Neither regulator asked the company to clarify the media reports that led to the "exuberant" share price movements.
But informally telephone calls were made to several newspapers saying the Thai AirAsia purchase idea of Mr Somkid's at the meeting was meant to be a joke.
Joke or not, the company, 51% owned by the Ministry of Finance with 47% of its shares traded on the SET, is obliged to inform the public -- taxpayers and stock investors -- of information that affects the value of the shares they hold.
As a state enterprise, THAI has to report to several cabinet members, from the premier to the transport and finance ministers. That means price-sensitive information is shared among a larger pool of people than with a non-state enterprise listed firm.
But as a listed company, the carrier must give its shareholders -- no matter how large or small -- equal access to market-moving information. Ambiguity will hurt small investors more than the big players.
As a Thai, I am heartened to hear from Mr Somkid that THAI has apparently bottomed out and should begin to "take off". As a taxpayer, I am glad my tax will not be wasted on subsidising the carrier's losses as the economic czar has ordered the airline to work out its investment plan for the next five to 10 years to return it to its halcyon days.
But if I were a THAI investor, I would hope to see the company I am putting my savings in be more transparent and the regulators more active in protecting investors when it comes to "unofficial" reports.
I do not want to see another insider-trading case on the SET.
Nopporn Wong-Anan is deputy editor, Bangkok Post.