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 .......

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