NUNTAWUN POLKUAMDEE
Bangkok Post
The Stock Exchange of Thailand has lost 300 billion baht in value over the past six months, largely due to poor investor sentiment about politics, says SET president Patareeya Benjapolchai.
The SET, which reached a year-high of 884.19 points in May, has since turned into a full bear market.
The main index yesterday shed 1.1% to close at 722.5 points in thin trade worth 11.325 billion baht. The index is now off nearly 15% for the year to date, with most of the losses coming over the past few weeks due to political infighting and other uncertainties.
The Supreme Court yesterday ruled that Yongyudh Tiyapairat, an executive director of the coalition-leading People Power Party, had committed election fraud in last December's polls.
The verdict could open the door for PPP to be dissolved and its senior leadership banned from politics for five years.
Meanwhile, the Constitutional Court yesterday ruled that a joint communique{aac} between Thailand and Cambodia over the Preah Vihear temple violated the constitution as the government failed to secure parliamentary approval. The opposition Democrat Party has already announced plans to call for the impeachment of Foreign Minister Noppadon Pattama over the case.
Political analysts say the two rulings are certain to put added pressure on Prime Minister Samak Sundaravej to dissolve parliament, resign or at the least, reshuffle the existing cabinet.
For local and foreign investors, the prospect of a repeat of the chaos of mid-2006, coupled with slowing economic growth and rising inflation, has led many to sell shares in favour of cash. But Mrs Patareeya said the country's corporate fundamentals remained sound. ''I think once politics stabilise, we could see a strong rally. The market remains strong in terms of fundamentals and earnings growth prospects,'' she said.
Veerachai Klongsamsee, a senior strategist with Far East Securities, said it could take another three months before a move to dissolve the PPP clears the legal system.
''I think the court cases have actually helped remove some uncertainties about the future, and we will likely see parliament dissolved in any case,'' he said.
The SET, which reached a year-high of 884.19 points in May, has since turned into a full bear market.
The main index yesterday shed 1.1% to close at 722.5 points in thin trade worth 11.325 billion baht. The index is now off nearly 15% for the year to date, with most of the losses coming over the past few weeks due to political infighting and other uncertainties.
The Supreme Court yesterday ruled that Yongyudh Tiyapairat, an executive director of the coalition-leading People Power Party, had committed election fraud in last December's polls.
The verdict could open the door for PPP to be dissolved and its senior leadership banned from politics for five years.
Meanwhile, the Constitutional Court yesterday ruled that a joint communique{aac} between Thailand and Cambodia over the Preah Vihear temple violated the constitution as the government failed to secure parliamentary approval. The opposition Democrat Party has already announced plans to call for the impeachment of Foreign Minister Noppadon Pattama over the case.
Political analysts say the two rulings are certain to put added pressure on Prime Minister Samak Sundaravej to dissolve parliament, resign or at the least, reshuffle the existing cabinet.
For local and foreign investors, the prospect of a repeat of the chaos of mid-2006, coupled with slowing economic growth and rising inflation, has led many to sell shares in favour of cash. But Mrs Patareeya said the country's corporate fundamentals remained sound. ''I think once politics stabilise, we could see a strong rally. The market remains strong in terms of fundamentals and earnings growth prospects,'' she said.
Veerachai Klongsamsee, a senior strategist with Far East Securities, said it could take another three months before a move to dissolve the PPP clears the legal system.
''I think the court cases have actually helped remove some uncertainties about the future, and we will likely see parliament dissolved in any case,'' he said.
4 comments:
Thanks to His Majesty Soryavarman II who built Preah Vihear.
Thanks to His Majesty Sihanouk who won Preah Viheah.
Thanks to His majesty Sihamoni for visiting and embracing his people at Preah Vihea to show Siam tha Khmer Kings are all caring for Temples of ours.
Thanks to Mr. Sok An and the Royal Government for making the histiory Preah Vihea now rises up high for the world to see.
May the Kampuchea's curse be gone.
Now is Thailand's curse who look down on Cambodia and Khmers for so long. May they take Kampuchea's suffering place, and let us Khmers free from it
11:02 AM I like your comment. You are a neutral Khmer. Jey Yo Kampuchea..
That is a bad sign that Thai is going down.
Jayo! ProLing Khmer!!
Oh Pussycat!Oh Pussycat!
Where are you, Pussycat?
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