Emergency rule proposal plunges share prices
Thai share prices closed 1.40 per cent lower on Wednesday, faring worse than the regional average, as the junta leader called for imposing emergency rule in Bangkok, brokers said.
Despite investors' fears, businessmen are rather positive with the call, saying that if this is to install political stability, it should benefit the general mood in the business sector. The Stock Exchange of Thailand (SET) composite index lost 9.53 points to 669.04 while the blue-chip SET 50 index dropped 7.66 points to 467.67. A source from a foreign brokerage house said that the emergency rule would exacerbate confidence among foreign investors, who have been wary of the Bank of Thailand's unclear measures. "Foreign investors' confidence in this government is terribly low. Thus, if the government is to enforce the emergency rule, this would worsen the situation as it would indicate the government's instability," he said. However, Suchart Chantaranakaracha, chairman of Thai National Shippers' Council, said that the emergency rule would raise political confidence among foreign and local business operators. "Thailand has suffered from instability and this leads to low confidence. If this is to improve the security stability, this should benefit the entire business community," he said. Business Reporters The Nation
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