Market slumps 22% this year

Given the uncertainty as to when investor confidence will return, local investors are preferring to stay out of the stock market.

According to an Asia Plus Securities (ASP) report, foreign investors sold shares worth Bt1.4 trillion between November last year and the end of July 2008, leaving their shareholding worth Bt1.76 trillion.

This figure is based on foreign investors' net buys to the tune of Bt3.17 trillion in 2004 to July 31, 2008.

The report also said that selling pressure on eight of the 20 most active stocks from 2004 to July 31, 2008 may continue for some time as their current market price is still higher than what many investors paid during this period.

The eight large market cap stocks are PTT, Thai Oil, Total Access Communication (DTAC), Glow Energy, Bumrungrad Hospital, Bank of Ayudhya (BAY), Siam Commercial Bank (SCB) and Indorama Polymers.

The broker estimated that PTT's average stock price between 2004 and July 31, 2008 was Bt210.70, while its closing price yesterday was Bt236.

Thai Oil's stock price over the same period averaged Bt28.70, compared with its closing price yes¬terday at Bt50.

DTAC's average stock price was Bt40.20, well below its closing price at Bt44.75 yesterday.

BAY's average price between 2004 and July 31, 2008 was Bt18.40, while its closing price yes¬terday was Bt19.10; SCB's purchas¬ing cost during the same period averaged Bt70.60, while yesterday's closing price was Bt75.50.

Glow's average stock price was Bt22.40 but closed yesterday at Bt29.

Bumrungrad Hospital's stock price averaged Bt25.60 over the same period while its closing price yesterday was Bt36.50.

Indorama Polymers' average price was Bt3.80 but closed yester¬day at Bt9.490.

Meanwhile, Tisco Securities said petrochemicals were the top buy sector this year for foreign investors, while the energy sector has been their top sell sector.

Thai Oil's foreign holding including nonvoting depository receipts (NVDRs) up to July 31, 2008 declined by 14.1 per cent from the beginning of this year.

PTT's foreign holding including NVDRs during the same period dropped 2.1 per cent, BAY's foreign holding fell by 4.7 per cent and DTAC's rose 2.6 per cent.