Thread: Dow drops 508 points, SET to test 500 barrier

Dow drops 508 points, SET to test 500 barrier
08 October 2008

Dow Jones further plunged 508.39 points this morning (Thai time), down 5.1%, at a five-year low of 9447.11, while the Thai stocks were affected by uncertainty in local politics coupled with prevailing US’ financial meltdown, resulting in the SET index dropping almost 5% on Tuesday with the index expecting to test between 500 and 535 points today (October 8)

Mr. Thawatchai Asavapornchai, senior vice president, Globex Securities Co., Ltd, attributed the local stock exchange’s continued plummeted on Tuesday to prevailing US financial crisis, coupled with uncertainty in the local political situation, after police dispersed anti-government People’s Alliance for Democracy (PAD) from besieging Parliament’s compound on Tuesday morning to clear path for the Government to declare its policy.

Foreign investors continued their sell off for Thai stocks on Tuesday amounting to 803.99 million baht. The SET index on Tuesday was down 23.09 points or 4.18% to close at 528.71 points.

He said that prevailing uncertainty in local politics have played more role than US financial crisis for investment sentiment in the local stock exchange. He forecast the SET index would move between 500 and 535 points today (October 8).

Meanwhile, Dow Jones further plunged 500 points this morning (Thai time) as banks’ stocks fell.

Frightened American investors took no comfort in regulators' continued efforts to stanch the US credit crisis and sent stocks to more steep losses, led by the financial sector.

The Dow Jones Industrial Average rose nearly 170 points at its morning high but slumped to finish lower for a fifth consecutive day, with the selling gaining momentum as the closing bell approached.

The Dow finished near its daily low, off 508.39 points, down 5.1%, at a five-year low of 9447.11, with all 30 of its components posting declines.

It was led down by a 26.2% plunge in shares of Bank of America, which is cutting its dividend and seeking $10 billion in capital. J.P. Morgan Chase and Citigroup also saw declines of more than 10% each. The Dow has plummeted more than 1400 points, or 13%, during its five-day losing streak.

thainews.prd.go.th

long way from those projections of 1,000 being branded about around this time last year .......

.

Wasn't Butterfly talking about the SET going to 1200 a year or so ago?

^ don't think so, even though I was going to leave the SET once it reached 1000, went to 900 though

some silly brokers were forecasting 1,200 as early as 2004

Might have been 1000.

Have to dig up Keda's thread I think.

SETs down 5% today, hovering around the 500 level

Yes it was keda who predicted 1000, and it looked as though it was on the cards at the time....note, at the time.

As buttfrier says it was up there in the high 800s, touched 900 then swooned at that altitude, at about the time PAD began their latest offensive.

Imho the panic we are seeing is not all rational, partly induced, and when the dust settles - as it will - many people will make a lot of money picking up cheap stock.

Surprisingly, retailers have been net buyers against foreign and institutional selling recently...they're sucking themselves into a black hole so the fatcats can get fatter.

Pretty serious stuff today here in Asia. Check out Japan!


AustraliaASX 100-188.40-4.98%3,594.1010/8 4:47pm
AustraliaASX All Ords-228.10-4.96%4,369.8010/8 4:47pm
AustraliaASX Mid-cap 50-237.80-5.39%4,176.7010/8 4:47pm
Hong KongHang Seng-1,284.11-7.64%15,519.6510/8 4:10pm
Hong KongHSCC Red Chip-273.89-8.54%2,934.0410/8 4:10pm
JapanNikkei 225-952.58-9.38%9,203.3210/8 4:30pm


Actually my avatar fits the mood quite well right now

Originally Posted by keda

Yes it was keda who predicted 1000, and it looked as though it was on the cards at the time....note, at the time.

If my memory serves me right it was only about a year ago, and the Dow was at record high of 14,100? 1000 for the SET was certainly on the cards, there were huge rallies of irrational excuberance going on around the world even after the credit crunch started for real on August 18th 2007.

What a difference a year makes!

SET broke through what should have been very strong support at 600, then tried for the next 4 days to recover but couldn't, after which it went into freefall through 500 (another -16%) like it wasn't there, in 4 days. Now down 40% in less than 5 months.

I would defer to buttfrier as more knowledgeable, but anyone's guess from here.

One of my stock is trading at 2 PE !!! that's right, 2 PE

it's a property stock though, but they keep bouncing back and crashing, great little trading game. The funny thing is that their earnings keep going up for the last 3 years, and yet the price keeps crashing. Paying 9% dividend now,

Not to worry. I rode the stocks back from the collapse 12 years ago. Rock bottom and up can be fun.

Originally Posted by Butterfly

One of my stock is trading at 2 PE !!! that's right, 2 PE

it's a property stock though, but they keep bouncing back and crashing, great little trading game. The funny thing is that their earnings keep going up for the last 3 years, and yet the price keeps crashing. Paying 9% dividend now,

i'd like a bit of that stock

a couple of years ago on this forum when the ftse was rising i said it would reach 6000 then sell, it reached 6600, i also said the ftse would be a buy at 4800 but where is the bottom, same goes for the set i think the next support level will be as low as 300
but with the present climate both political and monitory who knows.
buy gold.

dead cat should bounce back maybe 4-5%, then get out of the way.

LOL, looks like I was right, the stupid DOW did a 1000 point rebound, with the highest record ever, unfucking believable

completely irrational,

so far the damages:

Today = -7%

SET YTD = -45%

%Change Last 3 Months: -31.25%

almost there , wonder what the traders are having for lunch ?

^
Some free Thai Bev products I expect

Originally Posted by Mid

400 ........................??????

-55% since May, not much further, very strong support at 370-380 but if that breaks even stronger at 340-350.

Can't see any drop below 370-380 as relevant, more like greed by the boys taking advantage of the opportunity to squeeze those few extra baht.

dropped passed prior support levels with hardly a glance ,

no rules anymore ????????

Originally Posted by Thormaturge

^
Some free Thai Bev products I expect

didn't do the trick


SET

391.74

ok it is the Bahts turn I hope

already -9.36%, could well be another breather this session

-9.58%...getting there...

hit 390.6 which is >10% and bounced to 392.19 currently