Emergency decreeset takes a huge hit, slumps to 19mth low

 The Stock Exchange of Thailand Index took the hardest blow in the Asian region. It started with a sharp slump after Samak declared an emer¬gency degree in Bangkok early in the morning, and it kept falling to the day's trough at 655.62 - 2.9 per cent down - before rebounding slightly to close at 659.51. Turnover was thin at Bt12.61 billion.

Foreign investors alone sold shares with a net position of Bt3.4 billion, adding to their net sales of more than Bt100 billion since the beginning of this year.

The stock market has lost 23 per cent year to date, dampened by a spate of negative factors including the US subprime debacle.

Big marketcap stocks were reel¬ing in the fall. PTT, the SET's largest marketcap stock, lost 4.58 per cent to Bt250, PTT Exploration and Production sank 4.11 per cent to Bt140, Bangkok Bank slumped 3.42 per cent to Bt113, Siam Commercial Bank was off 3.25 per cent at Bt74.50, Kasikornbank dropped 3.55 per cent to Bt68 and Thoresen Thai Agencies dipped 8.67 per cent to Bt34.75.

Patareeya Benjapholchai, SET president, rushed to soothe the mar¬ket's jitters by saying that foreign investors' selling yesterday remained as usual but they might slow their investment to carefully digest the political situation after the state of emergency was declared in Bangkok.

She confirmed that Thailand Focus, an annual roadshow of the SET, would be held as scheduled between September 17 and 20.

At least two companies have delayed their initial share sales since the state of emergency was declared, she said. J Mart announced that the company's initial public offering would be postponed from September 16 to the end of the year.

Citicorp Securities (Thailand)'s head of equity at Citicorp Securities (Thailand) and Foreign Brokers' Association chairman ML Thongmakut Thongyai said foreign investors were not much shocked.

There was no indication of a for¬eign investors' selloff in Thai shares, he said.

"Now, there is no sign that foreign investors would unload Thai shares heavily but they consider it an oppor¬tunity to snap up stocks if the SET Index falls below 660 points," he said.

An analyst at Syrus Securities  rec¬ommended investors sell shares and hold cash as much as possible. Capital Nomura Securities issued a stern warning that the SET Index might hit a fresh year low at 660 points.