SET Index dips below 700 points
The SET Index yesterday fell briefly below the 700-point psychological level to a five-month intraday low due to continuing sell-offs by foreign investors as they shift into the bond market.
The Thai stock market yesterday fell significantly shortly after the curtain was raised and headed south further to the day's trough of 698.30, almost a 2.2 per cent fall, before rebounding slightly to close at 709.43, a 0.63 per cent drop. Turnover was moderate at Bt14.03 billion. Energy, bank, broker and communication stocks were at the centre of the selling pressure. Kim Eng Securities (Thailand) Plc (KEST) lost 4.24 per cent to close at Bt22.60, Asia Plus Securities Plc (ASP) fell 2.84 per cent to close at Bt4.10, Siam Commercial Bank (SCB) dropped 1.68 per cent to close at Bt58.50, Advanced Info Service Plc slid 1.07 per cent to close at Bt92.50 and PTT Exploration and Product Plc (PTTEP) dipped almost 1 per cent to Bt110. Foreign investors have proved to be net sellers in Thai shares with sales of Bt9 billion so far this year if the Bt73-billion buyout deal in Shin Corp Plc is not taken into account. Trinity Securities deputy managing director Visit Ongpittanakul blamed yesterday's steep fall on capital outflow across Asia. Foreign investors have switched to the money market, which offers better returns than the stock market, he said. "The money market provides 5-per-cent returns while dividend yields an average about 4 per cent. Political uncertainty is the factor that investors must closely watch," he said. Padermpob Songkroh, assistant vice president of Bualuang Securities, predicted that the SET index would slump to around 680 to 695 points before recovering in the middle of the third quarter. An analyst at Syrus Securities said that stocks would rebound because the political picture has become clearer recently. Foreign investors' actions will mainly depend on whether the US Federal Reserve decides to nudge up its key interest rate. Another analyst at Globlex Securities who requested anonymity said the stock market's performance was in line with global stock markets. He added that the selling by foreigners was unlikely to continue after the recent hefty sell-off. Siriporn Chanjindamanee The Nation
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