SET nosedives 4% on Cyprus, political concerns

Thai shares nosedived by as much as 60.58 points or 3.96 per cent in the morning session to 1,468.94 points on the escalating chaos in Cyprus and political concerns at home.

Stock Exchange of Thailand President Charamporn Jotikasthira viewed the slump part of normal correction and profit taking, after the rapid rise in the SET index. He said that from another angle, the correction offers a good opportunity for investors to accumulate promising stocks.

"After a sharp rise, it can head down," he said, noting that investors will then realise that investing in the stock market is like a two-sided coin.

The exchange will hold a press conference today at 4.30pm.

The morning slump followed a big loss in the five trading days. Aggregate loss in the past five days was 4.29 per cent, after the Stock Exchange of Thailand composite index hit the 19-year high at 1598.13 points on March 15.

Brokers attributed the sharp fall to two political reasons: the Bt2 trillion borrowing bill may violate the Constitution and Prime Minister Yingluck Shinawatra may be indicted for conflicting asset declaration.

In Cyprus, protesters gathered outside Parliament as President Nicos Anastasiades maneuvered stave off financial collapse. Seeking to unlock an international bailout to avoid defaults, the Cypriot central bank proposed a bill to overhaul the banking system that would allow Cyprus Popular Bank, the country s second-largest lender, to avoid a catastrophic bankruptcy and protect insured deposits to an amount of 100,000 euros ($129,000).

The SET's turnover remains brisk, at Bt52.87 billion.

Earlier, there were expectation that the SET index, buoyed by the strong economic fundamentals, would rise to 1,850 points this year.

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Source: http://www.news.thethailandlinks.com/2013/03/22/set-nosedives-4-on-cyprus-political-concerns/