Thai Stocks Dip On Bank Sales

Investors sold banks heavily as they were spooked by the possible financial impact on banks of new government rules limiting foreign loans, analysts told Reuters.

Sentiment was also dampened on a belief that banks profits growth this year might be stunted by dimming prospects for lower interest rates, they added.

The stock index tumbled six per cent, or 60.26 points, to 944.63 points at the close, the lowest level since August 3, 1993, when the market ended at 938.24 points.

Todays fall was one of the heaviest in the Thai bourses history, when foreign firms joined hands and sold stocks, said Thanadech Mahapokai of Book Club Finance and Securities.

 

The Thai market, which has been falling steadily since last Tuesday, bucked the trend of most other Asian markets on Monday, which were robust after U.S. stocks rallied on Friday. We will see a bit more pressure on the market this week. But some stocks are relatively reasonably priced and we might see some bargain-hunting set in, said James Marshall, head of research at Capital Nomura Securities. This is a realignment of recent overweighting in Thai bank stocks by foreign investors.