Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Thu, 19 Nov 1992 10:52:22 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Bankers welcome move against Sia Song

=======================  Forwarded  Message  ===========================
Date: Thu, 19 Nov 92 00:42:14+0700
From: Kamol Hengkietisak <kamol@ipied.tu.ac.th>
Subject: Bangkok Post Nov 19: Bankers welcome mvoe against Sia Song

Note: SET = Stock Exchange of Thailand
        SEC = Securities Exchange Commission

BANKERS yesterday lauded the Government's move against alleged
stock manipulators, claiming such action will not hurt the stock
market.

 Bangkok Bank (BBL) president Vichit Suraphongchai praised the
action of the Securities and Exchange Commission (SEC) in filing a
criminal complaint with the police.

The move was expected by everybody and is the right way to solve
the problem, he said.

The action will not adversely have an impact on the stock market
if the Government and all parties concerned explain the facts. He
hopes everyone will understand.

But Mr Vichit said that in the short term brokers will feel the
impact, particularly those which extended loans to Sia Song to buy
shares.

He said he has told finance companies affiliated to BBL that they
must comply with the policy of the central bank in extending loans
for share buying.

Siam Commercial Bank (SCB) president Olarn Chaipravat said the
market will not be affected by the SEC's action because only a
handful of speculative stocks took a dive in price.

Other stocks with good fundamentals remain strong, he said.

He also said he has discussed with SCB's affiliated finance
companies whether they have any problems in extending loans to buy
shares.

Bank of Thailand Deputy Governor Roengchai Marakanond said the
SEC's announcement will not hurt economic growth.

The action will benefit the economy and the stock market because
the market will gain the confidence of foreign investors.

In the past few months shares of four or five listed companies --
out of more than 300 -- have soared 400-500%. Foreign investors do
not understand this

The market might be affected but only for a short period, he said.
In the longer term, the market will rebound because the general
economic situation is favourable.

Bangkok Bank of Commerce (BBC) president Krirkkiat Jalichandra
said his bank could not do anything after its stocks were
suspended from trading yesterday.

He also cannot predict the BBC's share price trend.

He denied having known anything about the SEC's action against Sia
Song and 10 other alleged associates.

"I don't know any such move. I don't know how the BBC shares got
involved in it," he said.

He insisted he was not involved in any manipulation of BBC stocks.

Deputy Finance Minister Trairong Suwannakhiri said the SEC's
action has nothing to do with an Opposition motion calling on
Parliament to set up an extraordinary committee to investigate
stock manipulation.

He said the action taken by the SEC is to do with economics and is
not politically-motivated.

The Prime Minister was told of developments all the time, he said.
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