Fresh injections will ease US financial turmoil

Thai shares yesterday pared back their 5.8percent loss seen in the first trading session as the announcement soothed the market's jitters, closing 0.79 per cent lower at 600.38 points. Turnover was moderate at Bt18.76 billion.

Foreign investors yesterday continued to sell Thai shares with a net position of Bt1.13 billion.

They have unloaded Thai shares with a net value of over Bt120 billion so far this year.

Asian stock markets were in a tailspin, as investors have lost confidence in financial institutions following the collapse of Lehman Brothers Holdings and the US Federal Reserve's takeover of the American International Group and have sought safer bets, including gold, bonds and cash.

Once the turmoil settles, Asian stock markets, including Thailand's, will return to global fund managers' radar screens, given their attractive earningspershare (EPS) growth, he said during a press briefing about "Thailand Focus 2008" attended by 34 foreign and 83 local fund managers.

Thailand's economy remains solid, with high agriculturalproduct prices, he said. Thailand is a big exporter of several agricultural products, including rice and rubber.

Andrew Stotz, head of research at CLSA Securities (Thailand), rushed to allay nerves by saying local political risks had already peaked and that most foreign investors had already priced that factor into lowered EPS growth for the Thai stock market over the past three years.

Investment in the Thai bourse tends to improve following a clearer political situation, he added.

All relevant parties agree that liquidity in Thailand's financial market is more than enough to weather the US financial institutions' storm, Stock Exchange of Thailand (SET) president

Patareeya Benjapholchai said after meeting with Prime Minister Somchai Wongsawat, caretaker Finance Minister Surapong Suebwonglee and the Bank of Thailand about the impact of the US financial turmoil on Thailand.

"We don't have any worries, because the domestic economy is strong," she said.