Thread: Korn: SET plunge normal

Over 4%...normal?

Thai Stocks Fall Most in 15 Months, Baht Declines on Rising Political Risk
Yumi Teso
Jan 24, 2011

Thailand’s benchmark stock index dropped by the most in 15 months and the baht weakened as nationalist protesters said they will begin rallies to call for stronger action in a border dispute with Cambodia.

The benchmark SET Index of shares slid 4.2 percent after the People’s Alliance for Democracy, which seized Bangkok’s airports for eight days in 2008, said it members will rally “indefinitely” starting tomorrow to pressure the government to revoke past border agreements with Cambodia. Stocks in other Southeast Asian markets also fell on concern inflation will accelerate and lead to increased borrowing costs.

“Sentiment for the Asean stocks has been quite bearish on inflation and rate hike concerns,” said Masahiko Ejiri, a Tokyo-based senior fund manager at Mizuho Asset Management Co., which oversees the equivalent of $41 billion. “Amid already weak sentiment you have a story about a political rally in Thailand. That doesn’t help stocks at all.”

The baht declined 0.7 percent to 30.91 per dollar as of 4:14 p.m. in Bangkok and earlier touched 30.92, the weakest level since Sept. 16, according to data compiled by Bloomberg. The SET Index fell 4.2 percent to 964.50, poised for its biggest drop since October 2009.

Global funds sold 7.7 billion baht ($250 million) more local shares than they bought on Jan. 21, the most since May, taking this month’s net sales to $823 million, according to stock exchange data.

“The political concern led the stocks lower and that led the baht lower today,” said Nalin Chutchotitham, a Bangkok- based analyst at Kasikornbank Pcl.

Cambodia Conflict

The group is demanding that Thailand drop out of the United Nations’ World Heritage Committee, cancel a 2000 agreement with Cambodia on border negotiations and urge Cambodians to withdraw from disputed border areas, leader Chamlong Srimuang said today.

Government bonds gained for a second day. The yield on the 3.125 percent debt due December 2015 fell two basis points, or 0.02 percentage point, to 3.21 percent, according to Bloomberg data. The one-year onshore interest-rate swap, the fixed cost needed to receive a floating payment, rose 2.5 basis points to 1.785 percent.

bloomberg.com

bit lonely there Khun Korn ?

oxford grad for you

Thai bourse loses more than 4 per cent on China jitters
Jan 24, 2011

Bangkok - The Thai stock market fell 4.26 per cent Monday on jitters over expectations that China will raise bank interest rates to cool inflation, brokers said.

The Stock Exchange of Thailand index fell 42.89 points to 963.68, crashing through the 1,000-point psychological barrier for the first time this year.

'The main concern among investors was that China is planning to raise interest rates to cool local inflation,' said Chaiyot Jirankul, an analyst at Country Group Securities.

A massive outflow of foreign investments in shares weakened the baht currency which was trading at 30.92 to the dollar, the lowest rate in three months.

Brokers and government officials downplayed Thailand's political instability as a leading factor for the plunge, the steepest in Asia on Monday.

'Fluctuations are normal in regional markets,' Finance Minister Korn Chatikavanij told reporters.

Anti-government, ultra nationalist groups are planning a rally in Bangkok Tuesday to protest against the government's handling of a border conflict with neighbouring Cambodia.

'If there is an impact from the protest, it will be seen tomorrow, not today,' Chaiyot said.

monstersandcritics.com

Originally Posted by Mid

'If there is an impact from the protest, it will be seen tomorrow, not today,' Chaiyot said.

depends which protest

is this weakening of the baht short term or could we be getting back to a decent exchange rate i wonder

^

ask six different folks and you'll get seven different answers

however for what it's worth Thailand has very healthy foreign reserves .

Thanks Mid

bargain time

Originally Posted by bankao dreamer

is this weakening of the baht short term or could we be getting back to a decent exchange rate i wonder

Its short term. learn to live with a higher baht.

Originally Posted by Mid

^

ask six different folks and you'll get seven different answers

however for what it's worth Thailand has very healthy foreign reserves .

Or you can ask people that have been right for the last 10 years on the long term direction of the world markets. Look at the archives.

Austrian economists like Peter Schiff, Jim Rogers, Max kieser and Marc Faber. Austrians are not guessing, that is what sets them apart.

Max Kieser made a documentary in 2007 predicting the collapse of Iceland before it happened, most people know of Peter Schiffs record of predicting the collapse of lehman bros, Fanny mae ect.

Originally Posted by socal

Originally Posted by bankao dreamer

is this weakening of the baht short term or could we be getting back to a decent exchange rate i wonder

Its short term. learn to live with a higher baht.

Bugger !!!

Europe and the US are devaluing and inflating their way out of trouble. The Baht will continue to strengthen against the Dollar and the Euro accordingly.

Originally Posted by Thormaturge

Europe and the US are devaluing and inflating their way out of trouble. The Baht will continue to strengthen against the Dollar and the Euro accordingly.

inflating their way out of trouble

into trouble actually, but thats a long story.

Originally Posted by socal

Austrian economists like ....... Jim Rogers,

Very good commodity analyst though.

reading Jimmy Roger book on commodities, quite interesting and well written

didn't think he was Austrian though

SET plunge stems from normal profit-taking, says BoT


SET plunge stems from normal profit-taking, says BoT


วันอังคาร ที่ 25 ม.ค. 2554

• • 
  
  

BANGKOK, Jan 25 – A plunge in the Stock Exchange of Thailand (SET) composite index in the past few days stemmed from normal profit-taking by investors, not by any fundamental change in the country’s economic basis, according to the Bank of Thailand.

Mathee Supapongse, senior director of the BoT Domestic Economy Department, said risk factors to the economy at present are not different from what the central bank anticipated and many economic think tanks forecast earlier.

He said the sharp fall in the index late last week and early this week had probably come from normal sell-offs for profit-taking by investors.

Even so, the central bank will closely monitor the situation before the cause of the plunge is identified.

“The current economic fundamentals should not be a key factor behind the share dumping by investors. We cannot identify the cause of the SET plunge now because we have to wait for clear information first,” he said.

The BoT forecast the economy this year would grow 3-5 per cent on the assumption that the core and general inflation rates stay at 2-3 per cent and 2.5-4.5 per cent respectively, and the economic fundamentals remain strong.

Somboon Chitphentom, director of the BoT Prudential Policy Department, said the Thai economy had not yet experienced additional risk factors to the extent the central bank expected earlier.

Such factors include the slower-than-expected economic recovery of Thailand’s trade partners, international capital movement, and domestic political uncertainties.

The SET index plummeted by 42.89 to 963.68 points on Monday’s trading with a daily trade value of Bt37.4 billion. Foreign investors had a net selling of Bt4.05 billion. (MCOT online news)

Korn is a dangerous guy. The next generation of Thai scum politician in the making (aleready made?); he will rape this nation...

good news if it goes back to 900 or even 850

Originally Posted by Butterfly

reading Jimmy Roger book on commodities, quite interesting and well written

didn't think he was Austrian though

Jim Rogers has been a constant media presence for many years, accurately predicted the current boom-bust. He uses every opportunity to explain his economic rationale by his investment outlook, which is solidly rooted Austrian theory, not only of business cycles but of the costs of the welfare-warfare state.

He is an Austrian.

^ he is a fucking trader you dummy, not an economist

god you are dumb,

Originally Posted by socal

Originally Posted by Thormaturge

Europe and the US are devaluing and inflating their way out of trouble. The Baht will continue to strengthen against the Dollar and the Euro accordingly.

inflating their way out of trouble

into trouble actually, but thats a long story.

I should have said "out of debt"

Inflate asset values and the debt diminishes.

So does all credibility.

Originally Posted by socal

He is an Austrian.

Not sure how being born in Baltimore, Maryland makes him Austrian......