Thai shares make a big recovery

business January 07, 2014 00:00

By The Nation

The Stock Exchange of Thailand showed a big recovery Tuesday, with the composite index rising by 32.52 points or 2.56 per cent.

The index closed at 1,262.36 points.
As of January 6, the year-to-date loss was 5.23 per cent. 
Dumping Thai shares by over Bt40 billion in December, foreign investors have returned to the Thai market. During the past two trading days, their net-buy position was Bt1.94 billion.
On Tuesday, foreign investors were net-sellers, selling shares above their purchases by Bt1 billion. This lowered their month-to-date net sell to Bt846.97 million. 
Late last month, Goldman Sachs wrote a note to clients, titled "Emerging Markets: As the Tide Goes Out", recommending investors with a "moderate" tolerance for risk reduce their exposure in emerging markets by one-third, from 9 per cent to 6 per cent of overall portfolios. It views that emerging markets will continue to disappoint, following the US tapering on the bond-buying programme.
The Thai baht remained weak Tuesday, at 33.10 per US dollar as of 4.30pm. During the day, the baht fell to 33.12.