Investors should not panic over Monday’s sharp fall in the Stock

BANGKOK, Jan 26  – Investors should not panic over Monday’s sharp fall in the Stock Exchange of Thailand (SET) composite index as heavy sell-offs by foreign investors are expected to ease from now on, according to the SET’s group head for issuers and listings Chanitr Charnchainarong.

The SET index plummeted by 42.89 to 963.68 points in Monday’s trading with a daily trade value of Bt37.4 billion. Foreign investors had a net selling of Bt4.05 billion.

He said the foreign investors had stocks available for sale only a small amount now.

In the post-political violence period from June 15, 2010 to Jan 5 this year, the foreign net buy totaled some Bt100 billion.

Early last year, foreign shareholders sold stocks amounting to Bt20 billion. During 2010 there were large lots of trading in four stocks by foreign investors, who are business partners, worth Bt47 billion. They are Ratchaburi Electricity Generating Holding, PTT Chemical, BEC World, and Preuksa Real Estate.

During Jan 5-24 this year, foreign investors also dumped shares amounting to over Bt30 billion. It resulted in the foreign net buy remaining at only Bt10 billion now.

“The plunge in the SET index on Jan 24 was mainly attributed to profit-taking by foreign investors, not to mounting concerns over the inflation hike because the Bank of Thailand is able to control inflation efficiently.

“Also, the Thai stock market dropped only slightly in recent times while other markets had plummeted. So, it is not usual to see the SET fall more than other markets now,” he said. (MCOT online news)