Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Fri, 20 Nov 1992 08:04:00 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Stock market tumbles

=======================  Forwarded  Message  ===========================
Date: Thu, 19 Nov 92 22:58:22+0700
From: Kamol Hengkietisak <kamol@ipied.tu.ac.th>
Subject: Bangkok Post Nov 20: SET nosedives

THE stock market nosedived for a second day while the Bank of
Thailand yesterday announced new measures to return the market to
normal as soon as possible.

One of the measures is for the central bank to allow commercial
banks to buy stocks for their portfolios without limit for one
year, Bank of Thailand Governor Vijit Supinit said.

Until now, each commercial bank has been allowed to buy shares for
its portfolio not exceeding 20% of its capital fund.

Mr Vijit said the Bank of Thailand has told the Krung Thai Bank
that it will inject additional funds in the state-owned bank to
shore up the stock market if the first 5,000 million baht fails to
restore normality in the market.

He said the Krung Thai Bank began buying a "certain volume" of
stocks yesterday and will buy more today.

Funds totalling 10,000 million baht, to which money will be
contributed by members of the stock market (authorised brokers),
will be established soon.

"The Bank of Thailand has told commercial banks to help provide
liquidity for these finance companies if they need it and, if they
are still short, the central bank will provide them with more
funds," Mr Vijit said.

Mr Vijit said the Stock Exchange of Thailand and the Securities
and Exchange Commission are jointly considering an increase in the
loan margin rate from 50% to boost market liquidity.

The SET index meanwhile tumbled by another 33.87 points to close
at 834.17.

The prime gauge has lost 57.32 points or 6.43% in two days since
the SEC decided to take legal action against Song Watcharasriroj
on share manipulation charges.

The market started to lose last week when reports were spread that
the SEC would take action against certain alleged share
manipulators.

In nine consecutive trading days, the prime indicator lost 124.91
points or 13.02%.

Mr Vijit said the Bank of Thailand has unlimited funds to inject
into the money market since the SEC decided to take legal action
against Mr Song and his associates.

"We are ready to inject unlimited funds to financial institutions
which need money and the central bank has also asked major
commercial banks to help inject money into financial companies,"
he said.

Despite the measures taken, stock analysts expect the market to
remain nervous because of lingering rumours that the authorities
might move against other major investors on share manipulation
charges.

However, SEC secretary-general Ekamol Khiriwat said the SEC does
yet not have any plan to take other moves.

Rumours spread widely on the stock market yesterday of further
arrests and that some financial companies face ruin by heavy
withdrawals.

"These are all groundless," Mr Ekamol said.

Mr Vijit said there have been no "irregular moves" among financial
institutions.

"I also heard that depositors had rushed to withdraw money from
First City Investment & Trust Co, but after checking we found
nothing unusual," Mr Vijit said.

The FCI's major shareholder is Khunying Patcharee Wongpaithoon.
The company's stock price has also reportedly been manipulated by
a certain group of investors.

Meanwhile enraged investors gathering in groups at the Stock
Exchange of Thailand yesterday morning to vent their frustration
over the stock market's plunge demanded the resignation of SET
president Seri Chintanaseri for his alleged mishandling of the
latest crisis.

Scores of investors began gathering in groups in front of the SET
president's office at around 10 a.m. and demanded that Mr Seri
meet them to explain what action was being taken to restore
investors' confidence.

One of the enraged protesters told Business Post that throughout
the crisis during the last few days, Mr Seri had not made any
public appearance either on television or to meet investors to
explain the situation.

After Mr Seri failed to show up to meet the protesters, some of
the more emotionally-disturbed protesters began shouting abuses
and demanded his resignation.

The protesters numbering more than 100 dispersed about one hour
later.

Mr Seri did appear on TV late Wednesday night when he promised a
restructuring of the SET operational system to improve efficiency
which included, among other things, the creation of two new
assistant president positions.
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