Stocks were heading down in most Asian countries, following a selling trend of foreign investors. Thailand, Indonesia and the Philippines bourses nosedived amid worries about the prospect of fund outflows, with the Thai main index seeing its sharpest one-day loss since October 2011.
Thailand and the rest of Asia are bracing for more volatility, as foreign capital started to flow back to the United States on the back of improvements in some economic indicators. This comes at a time when Thailand is facing internal risks, from the rice-pledging scheme to intensifying anti-government sentiment.
Asian stock exchanges ended lower yesterday because of foreign sell-offs. On average, Asia-Pacific bourses showed a 0.7-per-cent slide. Leading the pack was the SET Index, which dropped 4.9 per cent (75.92 points), the most since October 2011, to 1,452.63. Trailing the Thai bourse were the Philippines, which plunged 4.6 per cent, and Jakarta, down 4.2 per cent.
Yesterday, foreign investors were net sellers on the Stock Exchange of Thailand, with their sells reaching Bt5.48 billion. Since June 1, net sells have been Bt28.19 billion, and the year-to-date figure is Bt49.28 billion.
The current outflows of foreign capital will be a boon to Thailand’s fiscal policy, especially the policy interest rate, Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong said today.
He said foreign investors moved their capital out of the country after profiting in the Thai stock and bond markets in the last few years.
At least US$12 billion in foreign capital was transferred into Thailand since late last year for short-term investment, consequently putting pressure on the baht which successively surged to Bt28-30 against the dollar, he said.
Mr Kittiratt said it would be unnecessary for the government to implement some of its fiscal measures but all parties concerned have yet to closely monitor the economic situation.
A Krungsri Bank foreign exchange trader this morning said the baht was at Bt30.93/95 against the dollar, adding that it was the weakest in eight months when it recently slipped to Bt31.03/05 against the greenback.
Thai Mango growers complain of low prices and fewer exports
Because of the global COVID-19 pandemic, their mangoes are not being exported, due to fewer buyers, and their prices have plunged to between 10 and 20 baht per kilogram, depending on size.
Mango orchard owners in Thailand’s northern province of Phitsanuloke are seeking help from the provincial administration to promote the sale of their sweet fruit, particularly Barracuda Mango variety.(more…)
Foreigners’ Participation in Thai Listed Companies explained
Special vehicles have been created to facilitate foreign investors so that they are able to invest in Thai
securities flexibly and conveniently.
Thailand Raises Public Debt Ceiling from 60% to 70% of GDP
Thailand’s State Monetary and Fiscal Policy Committee has decided to raise the ceiling of the public debt-to-GDP ratio from 60%...
Thailand Approves Package to Attract Wealthy Foreigners and Professionals
Thailand’s Cabinet has approved an economic stimulus and investment promotion package aimed at attracting wealthy foreigners and highly skilled professionals...
The Role of Telemedicine Today: During and Beyond the COVID-19
Lockdowns, quarantine periods, and hospitals fast filling to the brink needed the medical community to come up with solutions fast....
Malaysia, Thailand banks to join the ASEAN Banking Integration Framework
Banking institutions from Thailand and Malaysia are invited to join the ASEAN Banking Integration Framework and indicate their interest to...
Climate Change Could Force 49 Million People to Migrate in East Asia and the Pacific
Out-migration hotspots in agricultural areas of central Thailand and Myanmar coincide with areas expected to see declines in both water...