Thai Stocks Erase Losses on Yingluck Case, Property Curb Outlook
Thai stocks erased losses after the nation’s anti-corruption agency dismissed a case against Prime Minister Yingluck Shinawatra and the central bank ruled out the possibility of property-price controls.
The benchmark SET Index (SET) rose 0.5 percent to 1,528.46 at the close in Bangkok, rebounding from a slump of as much as 2.6 percent. Land & Houses Pcl (LH), the nation’s biggest residential developer by market value, gained 0.8 percent after tumbling as much as 5.8 percent in the morning session.
The National Anti-Corruption Commission dismissed an allegation that Yingluck concealed a loan when declaring her assets, Klanarong Chanthic, the agency’s secretary general, told a press briefing today. The Bank of Thailand sees no need for property-price controls, Somboon Chitphentom, senior director of its prudential policy department, said today.
“These two reports removed major concerns that have overhung the stock market for the past few weeks,” Athaporn Arayasantiparb, head of research at UOB Kay Hian Securities (Thailand) Pcl in Bangkok, said by phone today. “The market may make a big rebound this week.”
Thai stocks faced pressure today when the corruption commission met to discuss the complaint against Yingluck, Maybank Kim Eng Securities (Thailand) Pcl, the nation’s largest brokerage, wrote in a report.
Overseas investors sold a net 1.97 billion baht of Thai equities yesterday, the biggest outflow in two weeks, according to exchange data compiled by Bloomberg. Foreign selling indicates renewed concerns among overseas investors about Thai politics, according to Maybank Kim Eng.
Investors had earlier sold shares of property developers, driving an industry gauge to the biggest decline on the benchmark index, on concern that the central bank may introduce measures to cool residential prices, Chanpen Sirithanarattanakul, head of research at DBS Vickers Securities (Thailand) Ltd., said today. The Thai Property Development Index (SETPROP) rose 0.8 percent, rebounding from a 5 percent loss.
The Bank of Thailand left its benchmark interest rate unchanged for a fourth straight meeting yesterday, saying it will be vigilant about asset-price risks. The Nation newspaper reported yesterday that the authority may take steps to curb property prices after detecting hot spots, especially in the condominium sector.
Pruksa Real Estate Pcl (PS), the nation’s second-biggest residential property developer, jumped 5.7 percent, reversing a 2.9 percent slide at the trading break. Quality Houses Pcl (QH) gained 3.1 percent, rallying from a 2.1 percent loss. SC Asset Corp. (SC), controlled by Yingluck’s family, jumped 4.2 percent after dropping 3.3 percent.
-- Editors: Matthew Oakley, Ravil Shirodkar
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