False Tax Cut Report Lifts Stocks
April 04, 2011
The Stock Exchange of Thailand index rose 0.62 point to 1164.81. About 59.8 million shares valued at 4.65 billion baht changed hands, up from 48.7 million shares valued at 4.02 billion baht on Monday. Declining stocks outnumbered advancing stocks 109 to 177, excluding foreign shares. Dealers said the index was rescued from a sharp decline by a false late-afternoon news report that the Thai cabinet had decided to cut corporate taxes. At the time of the report, the index had been down about 14 points. The government has been mulling a proposal to cut the corporate tax rate to about 27% from 30%. But a spokesman for the cabinet said that no decision had been made to cut the tax. The report caused bargain-hunting investors to rush back into the market in search of blue-chip stocks, dealers said. Bangkok Bank, the second most actively traded stock, rose 4 baht to 228 baht a share. Thai Farmers Bank rose 3 baht to 179 baht a share.
