BoT urges SET stock
investors to use caution
As stock prices in the Stock Exchange of Thailand (SET)
are rising again along with a general improvement of the Thai economy, a
senior executive of the Bank of Thailand (BoT) has asked stock investors to
be cautious in their investment decisions.
BoT executive Kobsak Pootrakul said he believes that Thailand’s economic
recovery during the second quarter this year may not last long, as the
improvement resulted from increased sales of inventory goods.
Stock prices worldwide, including Thailand’s SET, have risen because of
funds injected by the US government in bailing out American financial
institutions, but the latter were unable to extend loans to the public and
decided to invest the money in financial and capital markets, pushing stock
prices upward, Kobsak said.
The increase could be compared to speculation in the oil market where oil
prices used to stand at US$30 per barrel and then jumped to US$70, he said.
Although there is positive news on the economy, the negative news is hidden,
he explained, advising investors to be cautious. (TNA)