|
Thai bourse chief hopes to see return of foreign investors
Stock Exchange of Thailand (SET) chairman Pakorn Malakul Na Ayudhya has
predicted that foreign investors will return to buy Thai stocks in the
second half of this year after having initially reduced their investment
portfolios by around Bt74 billion in the first half of the year.
The SET chief said the fundamentals of the Thai bourse and listed companies
remained attractive for foreign investment. “I think the overall investment
in the Thai bourse and stock prices in the second half of this year will be
better than now. Foreign investors have already sold a lot of shares while
local investors have begun to buy more. So, I believe some foreign investors
will return to buy shares,” he said.
Pakorn said that since early this year, the SET index had dropped by a lower
proportion than those of other markets in the region. He cited the
Vietnamese and Chinese stock markets as an example, both of which have
plunged by about 60 and 50 per cent respectively. It showed that foreign
investors remained confident of Thailand’s economic fundamentals and the
strong performances of listed companies he said.
Pakorn reasoned that foreign investors had dumped their Thai stocks in order
to reinvest in the United States markets where key interest rates are
expected to rise. The withdrawal of their investments is also a part of an
effort to reduce risks from fluctuations in the exchange rate of the baht
and the US dollar.
He said the anti-government demonstrations led by the People’s Alliance for
Democracy (PAD) is considered as one of the risk factors, but said it is not
the key factor that caused the foreign investors to sell their shares.
The SET chairman predicted that Thailand’s gross domestic product this year
would outgrow that of last year, which saw GDP expand 4.8 per cent, due to a
continuing growth in the export sector thanks to a higher world demand for
farm products and rising prices.
Concurrently, the government’s economic stimulus package and state-supported
mega projects would help drive the country’s economic growth, he said.
(TNA)
THAI staff seeks clarification of
order rescinding president’s suspension
More than 200 staff of Thai Airways International gathered at
the airline’s headquarters last Friday calling on the national carrier to oust
the company’s president, Apinan Sumanaseni, and protest the board chairman’s
decision to rescind an earlier board order to relieve the president from duty.
Permanent Secretary for Transport Chaisawat Kittipornpaibool, who acts as
chairman of the THAI board, announced last Thursday evening that he used his
prerogative as chairman to rescind the board’s decision after talks with leaders
of the THAI labour union.
Earlier, the board of the national flag carrier issued an order to “relieve”
President Apinan of his management authority, and appointed the company’s vice
president Lt. Norahad Ployyai as acting president, effective Friday.
The board claimed the company had been facing financial woes and the president’s
style of management failed to live up to expectations and caused division within
the company.
The airline posted a 47.6 per cent drop in its net profit in the first quarter
of 2008, due to high fuel costs and the rising strength of the baht currency.
Many THAI staff - including operating personnel, technicians and pilots -
rallied at the head office last Friday to seek Chaisawat’s clarification
regarding his decision to rescind the board’s order.
They stated in a protest letter that the order to replace the top executive was
made legally in accordance with the board’s resolution and authority, but that
the chairman inappropriately exercised his legal prerogative to rescind the
order.
Such an action made the staff confused about who is the real decision maker. So,
they have asked Chaisawat to reconvene the board to clarify the matter as soon
as possible.
The protesting staff said they did not want Apinan to stay at the top post
because his past management caused divisiveness among the workers.
Mr. Apinan came to the headquarters later and reiterated that he would continue
performing his duties despite the protest. (TNA)
FTI executive hopes to see Thai steel industry lead ASEAN
Thailand’s steel industry could stand at the forefront of the ASEAN market
in the future if it focuses on development in terms of both technology and
human resources, according to an industry executive.
Federation of Thai Industries’ Steel Industry Club president Payungsak
Chatsuthipol conceded that many operators in the steel industry were
concerned over news reports that Industry and Deputy Prime Minister Suwit
Khunkitti planned to end the required industrial standard for steel
products. This could have repercussions on the steel and construction
industries and related sectors they feared.
Consequently, Payungsak sought clarification from the ministry and received
an affirmation that it would not cancel the criteria. He said Thailand’s
steel producers met and voiced agreement that Thailand should come up with
an approach to enforcing an agreed standard for locally manufactured steel
products.
Payungsak said the private sector was confident Thailand’s steel industry
could stand at the forefront of the ASEAN market if operators cooperated
with foreign strategic partners to produce upstream steel products and
develop technologies and human resources in the industry.
He said he was not worried about the liberalisation of the steel industry
because he believed that the local producers had a competitive edge and that
with production of both upstream and downstream steel, concerns over heavy
fluctuations of steel prices in the world market would ease.
Thailand’s current steel demand totals 13 million tonnes per year and is
expected to reach 20 million tonnes a year in the next five to 10 years.
(TNA)
|
