ID :
189831
Mon, 06/20/2011 - 14:26
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Shortlink :
http://m.oananews.org//node/189831
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Thai private sector and journalists call for end to violence after July 3 election
BANGKOK, June 20 (TNA) - The private sector and journalists have called for all Thai political parties to stop resorting to violence as their main agenda after the country's forthcoming general election, set on July 3, to avoid adverse effects, namely huge capital outflows.
Jaramporn Chotikasathien, President of the Stock Exchange of Thailand (SET), made the call representing the Federation of Thai Capital Market Organisations, the Thai Bankers' Association, the Thai Chamber of Commerce, the Federation of Thai Industries (FTI) and the Tourism Council of Thailand (TCT), as well as the Thai Journalist Association or and the Thai Broadcast Journalists Association, which have jointly assessed the country's political situation after the upcoming national poll.
According to the joint assessment, Jaramporn said, Thailand would be highly likely to face a fresh political strife after the forthcoming general election, which could seriously affect the Thai stock market and listed companies, as both Thai and foreign investors would dump Thai shares in a massive selloff to reinvest on overseas capital markets with comparable returns instead, triggering huge capital outflows from the Thai economy.
The SET chief pointed out that foreign investors made a net 60-billion-baht selloff totally in only one month during Thailand's political violence last year and made another net over 20-billion-baht selloff over the past three weeks after the publication of analytical articles saying that Thailand would face political uncertainty in the wake of the July 3 general election.
The SET president affirmed that the Thai stock market has actually maintained its strong fundamentals based on the sound recovery of the Thai economy, acknowledging, however, that the Thai bourse has prepared measures to cope with the feared huge selloff of Thai shares, including the immediate imposition of the so-called "circuit breaker" rule under which a temporary 30-minute halt of stock trading would be ordered if Thai stock prices plunged by more than 10 per cent in a certain period.
Meanwhile, the Bangkok-based KASIKORN Research Centre (KRC) projected that the Thai economy could further expand by 0.5-1 per cent if there was no renewed political violence in the country in the coming months. (TNA)
Jaramporn Chotikasathien, President of the Stock Exchange of Thailand (SET), made the call representing the Federation of Thai Capital Market Organisations, the Thai Bankers' Association, the Thai Chamber of Commerce, the Federation of Thai Industries (FTI) and the Tourism Council of Thailand (TCT), as well as the Thai Journalist Association or and the Thai Broadcast Journalists Association, which have jointly assessed the country's political situation after the upcoming national poll.
According to the joint assessment, Jaramporn said, Thailand would be highly likely to face a fresh political strife after the forthcoming general election, which could seriously affect the Thai stock market and listed companies, as both Thai and foreign investors would dump Thai shares in a massive selloff to reinvest on overseas capital markets with comparable returns instead, triggering huge capital outflows from the Thai economy.
The SET chief pointed out that foreign investors made a net 60-billion-baht selloff totally in only one month during Thailand's political violence last year and made another net over 20-billion-baht selloff over the past three weeks after the publication of analytical articles saying that Thailand would face political uncertainty in the wake of the July 3 general election.
The SET president affirmed that the Thai stock market has actually maintained its strong fundamentals based on the sound recovery of the Thai economy, acknowledging, however, that the Thai bourse has prepared measures to cope with the feared huge selloff of Thai shares, including the immediate imposition of the so-called "circuit breaker" rule under which a temporary 30-minute halt of stock trading would be ordered if Thai stock prices plunged by more than 10 per cent in a certain period.
Meanwhile, the Bangkok-based KASIKORN Research Centre (KRC) projected that the Thai economy could further expand by 0.5-1 per cent if there was no renewed political violence in the country in the coming months. (TNA)
