SET lower without actions from Fed, ECB
The Stock Exchange of Thailand today weakened amid investor disappointment over lack of further stimulus measures from the US Federal Reserve Board and the Central European Bank.Theerada Charnyingyong of Phillip Securities (Thailand) attributed the decline to the absence, following the Fed and ECB meetings on Wednesday and Thursday, respectively.
The SET Index lost 11.13 points or 0.093 points in the morning session on turnover of Bt12.97 billion. At noon, the index stood at 1,190 points.
The index ended the day at 1,197.53 points, losing only 3.60 points or 0.30 per cent, on turnover of Bt25.6 billion. Other Asian stocks also fell. The Thai market was closed yesterday on a national holiday.
US central bankers led by Ben S. Bernanke concluded their two- day meeting Wednesday saying they "will provide additional accommodation as needed" to bolster the expansion. The Federal Open Market Committee also said it will "closely monitor" economic data and financial developments, suggesting it is focused on the economy’s near-term performance.
ECB President Mario Draghi yesterday left open the question on whether the bank would neutralize future bond purchases, a step it has taken with all of its interventions to date. He also said the size of the new programme would be "adequate to reach its objective" of curbing Italian and Spanish borrowing costs, a contrast with the "limited" scope of the previous approach.
The bond-buying programme echoes efforts by the Federal Reserve and other central banks to fix a credit crisis nearing its sixth year.