Sell-off is global phenomenon: SET executive
Pakorn Peetathawatchai, an executive vice president of Stock Exchange of Thailand, said that the sharp fall in the past two days was in line with regional movement. Foreigners are shifting funds from emerging markets to safer bets, reflecting through the higher yield of US Treasuries, he said.
While the Thai market lost nearly 2 per cent, Japan lost 2.63 per cent today and Hong Kong 2.3 per cent.
Pakorn admitted that foreign investors should continue selling shares, but this should not largely affect the Thai market. Foreign holding in Thai shares remain as high as Bt3-Bt4 trillion.
The exchange still maintains the target to grow the market capitalisation from Bt12.1 trillion now to Bt21 trillion in the next three years, believing that it would remain attractive to foreign investors, he said.
Thailandâ€™s economic fundamentals are relatively better than some other countries, particularly viewed from government spending projects. The recovery in global economy would also improve Thailandâ€™s exports. Meanwhile, the tourism industry is showing annual growth rate of 10 per cent. Importantly, the public debt still remains low to gross domestic product.
Pakorn noted that the exchange has updated the government on the market condition on a regular basis. At this moment, there is no need for special measures to boost the market, as the sell-off is a global phenomenon.