From: kamol@ipied.tu.ac.TH (Kamol Hengkietisak)
Newsgroups: soc.culture.thai
Subject: Bangkok Post Nov 20: Authorities try to cheer up investors
Date: 20 Nov 1992 16:35:05 +1100
Organization: Mail/News gateway
NNTP-Posting-Host: munnari.oz.au


THE stock market situation will return to normal soon despite 
heavy falls after the Securities Exchange Commission took legal 
action against Song Watcharasiroj, authorities said yesterday.
 
Deputy Prime Minister Amnuay Viravan said the SEC has taken the 
right move in curbing share manipulators and the move was taken 
with correct timing as it will prevent snowballing effects.
 
He is optimistic that the stock market will suffer for a short 
period only and will recover very soon.
 
"It will take time before the measures taken by the authorities 
become fruitful in reviving the market," he said.
 
He said stock investors should not panic: "If they don't panic, 
the market will be all right."
 
Dr Amnuay said foreign investors do not take Mr Song's case into 
account but believe this is the right time for them to buy Thai 
stocks which are now at low prices.
 
Meanwhile, Deputy Finance Minister Boonchun Trithong expects the 
market to rebound in the next few days following the injection of 
15,000 million baht.
 
He reasoned that in the past 4-6 months, Mr Song used only about 
10,000 million baht to activate the market.
 
He added that with the new money injected, he believes the market 
will rebound.
 
He also denied that the Government is hesitant to take action 
against share manipulation, noting that it was not in office 
during the past 4-5 months.
 
He said solving stock market problems is a delicate matter and the 
Government must be extremely cautious.
 
Asked to comment on the arrest of Mr Song, he said it is now up to 
the police to do something.
 
Meanwhile, Deputy Prime Minister Banyat Bantadtan denied having 
knowledge of alleged share manipulation by a close associate to 
the Democrat Party.
 
He said he does not know anything and he is not interested in who 
is engaged in the manipulation.
 
He said it is up to the police to take action without prejudice.
 
Asked whether this would destabilise the coalition Government, Mr 
Banyat said he does not think so.
 
He said the Government has the duty to administer the country and 
cannot get directly involved in the market.
 
But he said share prices sometimes swing so terribly that the 
Government has to order the government agencies concerned to 
intervene.
 
He said existing laws clearly define share manipulation, adding 
that he is worried about small investors.
 
He said the Government will not interfere in the works of the 
three agencies concerned: the Stock Exchange of Thailand, 
Securities Exchange Commission and Bank of Thailand.
 
Deputy Prime Minister Boonchu Rojanasatien is also optimistic that 
the Government's stability will not be shaken by the incident.
 
Instead, he predicted stability for the stock market in the long 
run as it will be rid of all illegal practices and investors' 
confidence and trust will be enhanced.
 
He also said panic selling at present was caused by 
misunderstanding, adding that the stampede will die down soon 
after the Finance Ministry issues explanations.
 
Asked whether he would support the amendment of the law to 
increase penalties on share manipulators, he said it is not a 
matter of increased penalties, but a matter of how to make closer 
supervision.
 
Meanwhile, Amorn Chandrasomboon, chairman of the SEC's Legal 
Committee, said the committee has been gathering evidences to take 
legal action against Mr Song "and we believe our evidences are 
enough for the police to take the case to court."
Newsgroups: soc.culture.thai