Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Fri, 20 Nov 1992 08:06:48 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Authorities reassure investors

=======================  Forwarded  Message  ===========================
Date: Thu, 19 Nov 92 23:00:29+0700
From: Kamol Hengkietisak <kamol@ipied.tu.ac.th>
Subject: Bangkok Post Nov 20: Authorities try to cheer up investors

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."
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