BoT asks private sector to use caution in business dealings in 2010
Despite signs of improvement in the global and Thai
economies in 2010, the Bank of Thailand (BoT) has warned the private sector
to use caution when doing business deals as risks and an uncertainty
continue to be negative factors.
BoT deputy governor Bandid Nijathaworn said volatility in the money market
may persist this year, noting that the central bank will intervene if
necessary to prevent obstacles from occurring. It is still necessary for the
private sector to adjust in the uncertain business climate.
“There are positive signs for the economy in 2010, but we shouldn’t become
reckless because uncertainty still prevails. The private sector should do
business with caution,” Bandid said.
The private sector must depend on itself as it also must manage costs
Financial costs are expected to rise after the government-sponsored economic
stimulus package starts to run down and volatility in money market shows
sign of increasing, he said.
The private sector cannot compete on the basis of cost-cutting alone. It
must explore ways to expand trade and investment and prepare for business
competitors from neighboring countries who would open businesses in
Thailand, Bandid added. (TNA)
Thai bourse gains 63% in 2009 from 2008
Despite economic problems within and outside Thailand
along with the domestic political crisis, the Stock Exchange of Thailand
(SET) index in 2009 soared 63 percent above 2008, while the daily average
turnover last year was about Bt17.9 billion, up 12.5 percent from 2008, said
SET president Pattareeya Benjapolchai.
The SET index on December 30, the last trading day of 2008, the market stood
at 734.54 points.
The smaller Market for Alternative Investment (MAI) closed at 215.30 points
on the same day, a rise of some 32 percent from a year ago, while daily
average turnover was at Bt372 million, an increase of some 50 percent from
the year before.
As of December 29, foreign investors were the largest net buyers with total
net investment of Bt38.5 billion, and were net sellers of Bt162.3 billion in
Six firms were listed on the main bourse and 11 companies were listed on the
MAI in 2009. The newly listed firms mobilized funds of Bt6.2 billion.
Pattareeya said the SET had laid out four strategies to implement in 2010,
with an aim to increase its potential and to drive the national economy.
The strategies are to boost the quality and upgrading confidence in the SET,
increasing liquidity, building future fundamentals, and preparing for SET
restructuring, as it will become a public company, she said. (TNA)