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The Stock Exchange of Thailand (SET) and Association of Securities Companies confirm the strong fundamentals of Thai listed companies and economy, and advise investors to closely monitor the situation and information during the market volatility.
Charamporn Jotikasthira, SET President, said: “Key factors which draged the market down were the drop of big-cap stocks in energy and banking sector hit by falling oil prices and fears of banking problems in Europe. However, profitability of Thai companies remains good, while their dividend yields are still attractive. In addition, the SET Index of the Thai stock market which is one of TIP countries (Thailand, Indonesia and Philippines) droped over the past five trading days, including today’s loss of 5.65 percent to close at 904.06 points, was at the same level as those exchanges in Indonesia and Philippines over the same period (SET 11.1%, Indonesia’s stock exchange 11.6% and Philippines’ stock exchange 13.6%).”
Charnchai Kongthongluck, President of Trinity Securities Co., Ltd., said: “Overall, global investors are cautious in risk assets. This is not only in Thailand, but also other markets worldwide. The panic selling was due to our underperforming index and we don’t think short selling and forced selling were the key factors. Our fundamentals remain strong, Thai firms are still making profits, which should be the key factor for investment decision.”
Montree Sornpaisarn, Chief Executive Officer of Kim Eng Securities (Thailand) plc, said: “The market fall was due to foreign selling. They sold the Thai stocks to cover losses of other assets in other markets. We still see high uncertainty. Thus, investors should monitor information closely. However, it should be an opportunity for investors to accumulate battered stocks and invest in tax-incentive funds.”
Sombat Narawutthichai, Secretary General of Securities Analysts Association, said: “The Thai stock market is in downward trend. However, it’s clear that prices are lower than their fundamentals would justify, while Thai firms still provide high dividends. In addition, government policy to stimulate domestic spending and cut corporate tax should support performance of Thai listed firms.”
