Shares Fall Amid Baht Worries
May 19, 2011
The Stock Exchange of Thailand Index fell 15.17 to 1007.51. Volume was 100.3 million shares valued at 6.81 billion baht changed hands. The select SET 50 index slipped 1.27 to 76.17. Concern about the strength of the Thai currency was blamed for the brittle state of the Thai market, adding to the pessimism sparked by the Iraq crisis and Moody's Investor Service's downgrade of Thailand's short-term credit rating. The baht closed Asian trading at 25.338 to the U.S. dollar. Analysts said the pressure on the baht heightened concerns over the state of the market. Forced selling also pushed the market lower as retail investors were pressured to sell back stocks they bought on credit from brokerage houses. Under SET regulations, stocks must be sold back to brokers once they fall to 15% of their purchase price. This pressure pushed the benchmark index down to its intraday low of 988.03 midmorning. But rumors of a new 17-billion-baht support fund shoring up the market dragged the bourse off its lows late in the session. Finance stocks were hardest hit again. General Finance & Securities was 6 baht lower at 58.50, with Nava Finance & Securities down 3.50 baht at 50.
VastPress 2011 Vastopolis
