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||15 October 2009
Thai bourse sees index plunge on market consolidation
A plunge in the Stock Exchange of Thailand (SET) index going in the opposite direction to other markets in the region in Wednesday’s trading stemmed partly from market consolidation after the index had surged by 65 per cent since early this year, TNA reported, quoting SET president Pattareeya Benjapolchai.
The composite index nosedived by 32.28 points to its lowest level of 714.39 in Wednesday’s trading before recouping its losses to close at 731.47, down 15.20 points or 2.04 per cent, with a heavy trading value of 47.57 billion baht. (1$=33.3 baht)
She said the index plummeted with the increased trading volume. It showed the market had consolidated periodically and fluctuated to a certain extent.
The SET chief suggested investors monitor operating results of listed companies in the third quarter of this year to be released gradually, but soon. She said SET would attempt to encourage the disclosure of information on operating performances and securities trading.
It would cooperate with securities companies to provide additional information to investors for investment decision.
Sombat Naravuthichai, secretary-general of the Securities Analysts Association, attributed Wednesday’s market plunge to a continued surge of the index by almost 100 percent in the past one year.
He said he had earlier projected that the index would plummet if it surged by 100 per cent from its bottom last year to 760 points, which is a the robust level that runs the risk of experiencing a bubble growth.
Mounting concerns by investors over the court’s order to suspend industrial projects in the Map Ta Phut Industrial Estate and the non-governmental organisations’ threat to seek the same injunction against operations of 500 more projects were other reasons behind the SET index plunge.
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