Dimet defies SET gloom

Thai shares continued their seemingly relentless fall yesterday, plunging almost 3 per cent to the lowest level seen since August last year as anxiety over the US sub-prime mortgage mess overshadowed the formation of the next government.

The SET Index slumped 2.93 per cent to close at the day's trough of 766.53 points. Early gains soon succumbed to heavy selling by foreign investors who dumped Thai shares with a net value of Bt2.15 billion yesterday alone. Turnover was moderate at Bt27.84 billion.

PTT dropped 7.5 per cent to Bt296 on reports that it might have to pay a higher rental fee than expected for its three gas pipelines in the gulf. PTT Exploration and Production slumped 5.26 per cent to Bt144, Siam Commercial Bank (SCB) fell 2.45 per cent to Bt79.50 and Banpu slid 1.03 per cent to Bt386.

Despite the gloom, Dimet made a dazzling debut on the Market for Alternative Investment yesterday, rising 136 per cent above its initial public offering price at one point.

The stock started the day at Bt2.20, 120 per cent higher than its offering price of Bt1 each, and headed further north to the day's peak of Bt2.36 before weakening to close at Bt1.63 - a 63-per-cent gain.

As well as the Thai stock market, other Asian markets were caught up in yesterday's tumble as investors registered their doubts about the ability of President George W Bush's economic stimulus package to boost the sluggish US economy.

Indian share prices took the hardest blow, off 7.41 per cent. Hong Kong's Hang Seng Index plunged 5.5 per cent, the benchmark Shanghai Composite Index, which covers A and B shares, fell 5.14 per cent, the Tokyo Stock Exchange's benchmark Nikkei-225 Index dropped 3.86 per cent, and the benchmark Kospi Index slumped 2.35 per cent.

Sicco Securities head of research Kiatkong Decho said the steep slump in Thai shares resulted when investors took clues from wobbles in other Asian markets, triggered by the prevailing US sub-prime turbulence.

"Investors should keep their eyes on foreign stock markets, and if the Thai stock market rebounds today, they should unload stocks and hold cash to digest the situation," he said.

Bualuang Securities senior analyst Komson Poramaphuti said that investors dumped stocks yesterday because they were concerned that the affects of the sub-prime mess were spreading to Japan.

Oranan Paweewun

The Nation