Thai stock prices have been affected by several factors, e.g., the Thai-Cambodian border tension, imposition of the Internal Security Act in seven Bangkok districts, and anti-government rallies, which are planned to intensify on February 11, noted Mr. Paiboon Nalinthrangkurn, chairman of the Federation of Thai Capital Market Organizations (FeTCO). He suggested that investors buy stocks with sound fundamentals while keeping updated on global economic movement. The Stock Exchange of Thailand (SET) affirmed that it has received no reports that any listed firm has been significantly affected by the Thai-Cambodian border crisis, while assuring that it has been closely monitoring events.
“These internal and external factors have had some short-term psychological impact on investors and led stock prices to fluctuate lately. Investors, who are uncertain, should opt to buy stocks with good fundamentals, which are sound choices over the long term. Investors should also follow overseas economic factors, as funds have begun to flow from emerging markets, including Thailand, to those where signs of economic recovery are strong”, said Mr. Paiboon.
Moreover, investors should closely monitor the political situation in Thailand and update themselves with analyses from research agencies, he noted further.
Thai stock investment continued to be sound due to strong fundamentals, including an annual dividend yield of 3.82% as of January 2011 which is higher than regional markets ,the SET reported.
The SET will continue to keep a close eye on the situations and their possible effect on listed firms, SET Chief Regulatory Officer Sakkarin Ruamrangsri stressed. He noted that if there was any important information to be shared with investors, it would be disseminated without delay. In the meantime, the SET is urging all investors to continue monitoring the situation for events that may impact their decisions.