SET imposes tough measures to contain speculations

BANGKOK, February 16 (TNA) - Effective from March 1, 2013, traders of stocks named as “abnormal trading patterns” will have to use cash balance accounts for six consecutive weeks, instead of the existing three-week minimum, the measure of which is aimed at containing speculations on the Thai stock market. According to an announcement issued by the Stock Exchange of Thailand (SET), the tough measure is to be imposed after the SET and the Securities and Exchange Commission (SEC) have found that the Thai bourse has become too overheating since the beginning of this year. The SET pointed out that trading of non-SET 50 stocks has accounted more than 50 per cent of the total since last month, compared to overall 36 per cent last year, and more than 100 stocks are now trading with price-to-earnings ratios (P/E ratio) of over 40 times; while retail investors have also increased to 62 per cent, from 50 per cent last year. The SET said as of now, 44 stocks have been named for trading restrictions, compared with 50 stocks totally last year, reflecting that speculations are now rife on the Thai bourse. The Thai stock authorities acknowledged that the cash balance accounts are needed for trading of those stocks to cool down the speculations. (TNA)