Index plunge stems from consolidation

BANGKOK, Jan 23 (TNA) – The Stock Exchange of Thailand (SET) composite index has dropped for many consecutive days because it has consolidated following a surge of up to 8.2 per cent since December last year, according to SET president Pattareeya Benjapolchai.

She said the continued dive also stemmed from investor concerns over Beijing’s issuance of measures to curb excessive lending by commercial banks, which dampened investment in stock exchanges in Asia and the United States.

In addition, SET’s investment sentiment has been affected by political factors arising from renewed rallies by the Red Shirt protesters.

Stock trading in the January 1-21 period saw the foreign net buy of Bt2.9 billion.

Mrs Pattareeya said the SET targeted to increase the market capitalisation by Bt100 billion this year. It will step up efforts to encourage major companies to raise funds through the stock market.

She believed profits earned by listed companies in the first quarter of this year would outnumber those of the previous year.

Profits gained by commercial banks as a whole in the first quarter are likely to stand at Bt91 billion, up 10 per cent from the Bt82 billion realised in the comparable quarter last year, she said. (TNA)