Thread: SET chief warns investors of bubbles in some stock trading

SET chief warns investors of bubbles in some stock trading


SET chief warns investors of bubbles in some stock trading


วันอังคาร ที่ 09 พ.ย. 2553

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BANGKOK, Nov 9 – Stock Exchange of Thailand (SET) president Charamporn Jotikasthira on Monday warned investors to invest in the market with caution, saying there are bubbles in the trading of some stocks.

He said the SET composite index had surged rapidly and surpassed the 1,000-point level because Thailand’s economic fundamental is strong, returns on investment in the stock markets are higher than saving returns, and foreign capital continued flowing into Thailand, particularly in the past 3 months.

He conceded prices of some stocks are higher than they should be. Bubbles are seen in trading of some securities.

So, he advised investors to invest in the market with greater caution and to seek additional information from securities analysts because the market runs the risk of plunging if foreign investors took profits and withdrew money from the country rapidly.

However, he affirmed the overall market had not experienced such bubbles.

Regarding a possible move by the government to collect taxes on the capital inflow to slow the baht appreciation, the SET chief said he had not yet discussed the matter nor did he believe that capital flowing into the stock market would be taxed.

Rather, he said the tax measure would be taken in the bond market because capital flowing into the market is as high as Bt250 billion while that in the stock market is around Bt60 billion.

Consequently, should the tax measure really be acted upon, it should have a temporary impact on the bond market, not the stock market, he added. (MCOT online news)

For those interested - here is what it takes to be eligible to trade on the SET via an Internet account (in this case Siam Commercial Bank). Perhaps someone has posted this - but I searched and didn't find it. Basically, you need to be earning (and prove it) circa USD 120,000 annually. Then you need to have a pre-paid escrow account with them of course.

** Foreign retail customers only

Service conditions:
Payment condition: Prepaid only
Commission Rate: 0.15%

For more information: SCBS Online Call center at +662-949-1234, e-mail
of total trading value (online), minimum charge 53.50 baht
scbsonline@scb.co.th , or visit our website at www.scbsonline.com

Required documents for opening an internet trading account (stocks)
1. Completed “Application Form” -- sign where marked and fill out all sections in
Sign here

2. Two certified copies of the passport

- A certified copy of bank statement (minimum balance of Baht 1 MB) or;
document of financial support, choose only one of the followings:

- A certified copy of income payment slip (minimum monthly income of Baht 300,000) or;

- An investment draft payable to “SCB Securities Co., Ltd. for Customers” (minimum of Baht 300,000, other currencies will not be accepted)

3. Cash of Baht 30 for duty stamp fee, foreign currencies accepted (please refer to the exchange rate at www.scb.co.th/index-exchange.htm)

4. Three certified copies of SCB savings/ current account’s passbook or statement (if any) with clear account owner’s full name and the account number.

(etc..)