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Stock Exchange Of Thailand To Watch Afternoon Trading Closely And Ready To Bar Net Settlements If Highly Unusual Speculation Is Found

Date 17/09/2003

Ms. Patareeya Benjapolchai, the SET Executive Vice President, disclosed about the chance of prohibiting net settlement trading in securities found to be highly speculative.

"Today's trading turnover in the morning session was as high as 32,491 million baht accounting for the highest morning trading record ever. It was found that there were huge speculating in some certain securities resulting in unusual price and volume movements without any reasons, which could thus affect overall trading in the market. So, the SET will therefore monitor the afternoon trading session closely and there is a high probability that the SET will have to announce prohibition of trading via net settlements in some securities if afternoon trading is still highly speculative similar to this morning's session. Moreover, the SET will rigorously monitor the changes in price and volume of highly volatile securities continuously. If there is to be any net settlement prohibition, the announcement will be made in advance."

Ms.Patareeya went on to say that the SET's trading surveillance and actions are aimed at ensuring that securities trading is conducted appropriately. It is also designed to prevent damages likely to occur to investors who take part in the speculation without having prudently considered related investment information but rather take advantage of investment opportunities with no preparation for the potential risk that may occur.