SET index falls in line with worldwide stock markets

BANGKOK, December 15 (TNA) - Finance Minister Sommai Phasee says that the falling Stock Exchange of Thailand (SET) index since late last week is in line with declining indices of worldwide stock markets. Sommai told journalists of the circumstance on Monday, attributing the plummeting SET index to concerns over the falling global oil prices. Sommai noted that rises and falls are normal to stock exchanges and a drop in global oil prices should positively cut people's costs of living, calling for a cut in fares of public transport services in the country subsequently. Sommai insisted that the Thai government will continually restore confidence among both Thai and foreign investors, acknowledging that Thai investors are more sensitive. According to the finance minister, the Thai government has not raised any tax, but cutting taxes, instead, to help local small and medium-sized enterprises (SMEs) and implementing measures to stimulate the national economy, which is expected to further expand next year, along with Thai exports. The SET index closed at 1,478.49 points on Monday afternoon, a further drop by 36.46 points or 2.41 per cent from late last week. Meanwhile, SET President Kesara Manchusree gave the same reason, confirming that the falling SET index has been in the same direction of worldwide stock markets, citing, as an example, the US Dow Jones Industrial Average index, which fell by as much as 315.51 points when it closed last Friday (US time), caused by the declining global oil prices. Citing information from MSCI, a leading provider of investment decision support tools to over 6000 clients worldwide, Kesara pointed out that the indices of emerging global stock markets have dropped by 5.8 per cent since October 2014, while the SET index has dropped by 4.2 per cent, close to the decline of the Kuala Lumpur Stock Exchange in neighboring Malaysia. The SET president stressed that the SET will follow up the updated situation closely, but it appears to be unnecessary at the moment to set up a fund to support stock prices on the Thai bourse, advising international investors not to be panic. (TNA)