From: htk@ipied.tu.ac.TH (Hugh Thaweesak Koanantakool)
Newsgroups: soc.culture.thai
Subject: FWD:Bangkok Post Nov.21 (Stock Market)
Date: 21 Nov 1992 13:50:48 +1100
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From kamol Fri Nov 20 21:10:23 1992
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From: Kamol Hengkietisak <kamol>
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Bangkok Post Nov 21: Brokers relax margin loans
TOP brokerage houses, with full support from the Bank of Thailand, 
have agreed to ease margin loan conditions for clients in an 
attempt to end panic selling.
 
Instead of forcing stock investors borrowing margin loans from 
brokers to sell their holdings as earlier instructed by the 
central bank, brokers will give them time to adjust themselves and 
other assistance.
 
The decision was made at a meeting of 10 major brokers and 
sub-brokers and Bank of Thailand Governor Vijit Supinit.
 
The brokers are Multi Credit Corp, Thai Securities, Thai Fuji15, 
Union Asia Finance, Phatra Thanakit, Asia Credit, CMIC, Asia 
Securities, Siam City Credit and Siam City Finance.
 
Phatra Thanakit president Viroj Nualkhair said after the meeting 
that the 10 brokerage houses have agreed, with permission from the 
Bank of Thailand, to stop forcing their clients to sell off their 
holdings.
 
The central bank earlier instructed certain financial companies 
considered having extended excessive margin loans to reduce their 
margin loan exposures before the year-end by forcing their clients 
to sell off their holdings.
 
But since the Securities and Exchange Commission took legal action 
against Song Watcharasriroj, the stock market plunged heavily as a 
result of panic selling by stock investors, so the central bank 
called a meeting with the top 10 brokerage houses and took the 
measure to end panic selling.
 
Mr Viroj said each brokerage house attending the meeting yesterday 
will check the investment portfolio of each of their clients and 
provide them with professional suggestions on how to cope with the 
current situation.
 
The companies will reschedule loan repayment periods for clients, 
reduce interest rates or even grant them grace periods. "In the 
worst case, we will extend more margin loans to them," Mr Viroj 
said.
 
He said the measure is necessary because "if we force our clients 
and they suffer, we will also suffer."
 
In addition to the measure to ease margin loan conditions, all 
brokers have agreed to make contributions proportionate to their 
market shares for the establishment of seven unit-trust funds 
aimed at shoring up the stock market.
 
The seven funds -- two having a capital fund of 1,500 million baht 
each and the other five 1,400 million baht each -- will be managed 
by seven mutual fund management firms which are expected to start 
buying stocks with strong fundamentals next week.
 
Mr Viroj expressed confidence that the stock market will stabilise 
soon although it will not be within weeks. "All brokers have 
cooperated in bringing the market back to normal, so the problem 
will be solved soon."
 
He admitted that the total damage from the heavy plunge of the 
stock market amounted to more than 70,000 million baht.
 
Meanwhile, Mr Vijit said the Bank of Thailand has stationed its 
officials at all financial companies so they will immediately help 
solve any possible problems.
Police seek to freeze Song's liquid assets