Thread: Thailand : SET halts trading

MARKETS

SET halts trading
Fri, October 10, 2008 : Last updated 15:35 hours

The Stock Exchange of Thailand has suspended trading for 30 minutes after the SET composite index plunged to more than 10 per cent five minutes after the afternoon trading session when the index plunged to 449.91.

At 449.91, it was the lowest since June 2003.

After the 30-minute halt, the SET Index recovered slightly, losing 9.25 per cent to stay at 453.73 points at 3.15pm.

This was the second time that the exchange opened the "circuit breaker" since the SET was established more than 30 years ago. The first circuit breaker was on in December 2006 when Thailand's central bank implemented the 30-per-cent capital reserve requirement.

The second level of the circuit breaker is to suspend the market for one hour once the index plunges by more than 20 per cent in a day.

European stocks also plunged Friday, with London and Frankfurt each losing more than 10 per cent and Paris more than nine per cent as the global financial crisis deepened further.

London's FTSE 100 index of leading shares nosedived 10.20 per cent to as low as 3,873.99 points - the first time below 4,000 points since July 3, 2002 -- before pulling back slightly.

Frankfurt's DAX 30 also shed more than 10.0 per cent before paring losses and in Paris the CAC 40 dived 9.68 per cent.

Japan stocks plunged, capping the Nikkei 225 Average's biggest weekly decline in its more than 50- year history, as the deepening credit crisis stoked concern that company failures will increase.

Indonesia also suspended trading on the local stock exchange for a third day running Friday on fears of following Asian markets on their nightmare downward slide.

nationmultimedia.com

So what does this mean?

Will the baht get weaker than it already is?

~ Down doobie doo down down! ~

We can only hope!

I am not looking to benefit from others trouble, but if it hits 40 baht to dollar, I am booking a private party at Timbas with all trimmings!!!!!!!!!

Only inviting myself and Mrs. Chi though!!!!

Originally Posted by chitown

I am not looking to benefit from others trouble, but if it hits 40 baht to dollar, I am booking a private party at Timbas with all trimmings!!!!!!!!!

Only inviting myself and Mrs. Chi though!!!!

I'm hoping the baht takes a dumb with all this chaos.

No way can the fookers keep floating the Micky Mouse currency under these circumstances

THB is up today, from yesterday

trouble is the attention is all on the big currencies, not the shitty one, so they get a free pass

Originally Posted by HungryHeart

Originally Posted by chitown

I am not looking to benefit from others trouble, but if it hits 40 baht to dollar, I am booking a private party at Timbas with all trimmings!!!!!!!!!

Only inviting myself and Mrs. Chi though!!!!

I'm hoping the baht takes a dumb with all this chaos.

No way can the fookers keep floating the Micky Mouse currency under these circumstances

From what I understand, everyday the Thai government keeps buying a huge amount of baht with US dollars to keep it strong. Foreigners are converting their Thai baht to US dollars and other foreign currencies at an unbelievable rate as they are expecting a crash.

Can anyone verify that or correct it?

Pound is down to 56.87 baht

in 2000 the set was hovering around the 250 mark
in 2001 - 2002 the ftse hit 3400 the exchange rate was about 60 -65 bht for the gbp.
what we have to work out is who is now in deeper do do than the other, Thailand or GB
personaly i would gamble and it is only a gamble that GB is slightly better placed at this moment in time.
however if thailand could sort out the political problems tout suite then it could all change.
Come xmas 65bht to the pound any takers ?

SET nosedives 10%
10 October 2008

The Thai stock exchange’s SET composite index nosedived 10.02% or losing a record 50.08 points, the biggest drop both in terms of value and percentage for the SET’s 33 years history, in line with global stock exchanges’ sell off, spanning from Dow Jones this morning (Thai time) which lost almost 6%, fueled by Japan’s Nikkei’s plummeting 9.6%.

While the Securities and Exchange Commission has tried to pacify investors not to be panic, suggesting myriads of good fundamental Thai stocks are still available.

The plunge prompted the Stock Exchange of Thailand implementing circuit breaker to temporarily halt trading for 30 minutes, spanning from 2.35 pm and 3.05 pm, after a mere five minutes opening bell this afternoon (October 10).

At 2.35 pm, the SET took the steepest one day plunge in its 33 years history, dropping by a record 50.08 points or losing 10.02% to close at 449.91 points, with total trading turnover amounting to 10.85 billion baht.

The steep plunge was line line with Japanese European bourses’.

Tokyo's benchmark index fell today to its lowest level in five years. The Nikkei dropped 881.06 points, or 9.6%, to 8276.43, its lowest level since May 2003. Since the start of this week, the benchmark index has lost 24% of its value.

Mr. Prasong Vinaiphat, Deputy Secretary-General, Securities and Exchange Commission (SEC), commenting on SET index’s significantly decrease this week due mainly to prevailing Western financial crises and uncertainty in local politics since Tuesday, said today (October 10) that degree of volatility of securities trading in the local stock exchange and derivatives market was not different from other regional markets.

From his talks with chairmen of Association of Securities Companies and Asset Management Companies Association, coupled with SEC’s information submitted by securities firms, up until now, the securities firms’ financial positions or capital funds were not affected by prevailing situation. Redemption of units was still normal.

However, SEC was still closely monitoring impacts from the situation with securities firms, mutual funds’ trading and investment, as well as situation of overall mutual funds’ market, so as to be prepared for untowards incidents.

Regarding short selling, he said that volume of the activity slightly increase by 1.4% of total trading value, compared with 0.6% last week.

The short selling’s value this week accounted for 1.7% of total trading value in the SET 50. This was relatively very small amount, especially when compared with other regional bourses.

He insisted that Thai regulations supervising short selling was more tight than other countries’. For the Thai context, investors wanting to do short selling must be covered short for securities involving with the activity.

In addition, the selling prices must be no less than previous closing prices of the securities, or so-called zero plus. The securities subject to short selling must be in the SET 50 only as they are supposedly to be relatively big market capitalization securities with relatively high trading liquidity, and high number of traders. So, SEC believed that impact of short selling activity against overall market’s trading situation was difficult.

“Regarding investment in the stock exchange, I still foresee that good fundamental securities are still ample. This is particular the case when securities prices significantly drop”, said Mr. Prasong.

He pointed out that at the moment, there were a record 344 securities, or 65% of total securities available in both Stock Exchange of Thailand and Market for Alternative Investment (MAI), whose prevailing market prices were less than their book values.

While number of securities accounting for about a half of the total markets still possessed over 10% return on equity and over 5% for dividend yield.

Compared to deposits in commercial banks, he noted that investment in good fundamental securities yielded more attractive return.

Under prevailing volatility in the markets, SEC asked investors to constantly follow information for investment. They were urged to exercise cautiousness for their investment decision.

“(I) can assure investors that officials are closely monitoring markets’ situation. And (we) are prepared to implement special measures if (we) deem necessary,” he said.

thainews.prd.go.th

a nice rebound yesterday, from 5% to 7% for the SET50 Index

a lot of bargain buying but not enough sellers,