SET index, Thai baht plunge in wake of martial law imposition

BANGKOK, May 20 (TNA) - The Stock Exchange of Thailand (SET) index plunged 15.94 points, or 1.13 per cent, to close at 1,394.69 points on Tuesday, in the wake of the nationwide imposition of martial law. The SET index even nosedived by 23 points just after the Thai bourse opened on Tuesday morning, hitting its lowest level at 1,387.62 points, as investors apparently sold their stocks to reduce risks. The Thai baht also depreciated against other currencies in the region, standing at 32.64-32.66 baht a US dollar when the domestic currency market opened on Tuesday morning, down from its closing value of 32.44/45 baht against the greenback on Monday. Fund managers viewed, meanwhile, that the overall domestic situation should improve after the martial law enforcement on early Tuesday morning, with the value of the Thai currency expected to move between 32.50 and 32.70 baht a US dollar. But stock analysts said they were waiting for reactions from pro and anti-government movements. Kongkiat Opaswongkarn, Chief Executive Officer (CEO) of Asia Plus Securities Public Company Limited, suggested that investors should not panic but rather waiting for clear developments, especially on the possibility of establishing an interim government or organizing the next general election. Padermpop Songkroh, Managing Director of Kasikorn Securities Co, pointed out if a new government was formed soon, the national economy could start recovering in the second quarter of this year. Charoen Iampattanatham, Stock Analysis Director of KT Zmico Securities Public Company Limited, assessed if demonstrators suspended their movements, they would be beneficial to the Thai stock market only in the short term. Wallop Wittanakorn, Vice Chairman of the Federation of Thai Industries (FTI), said the Thai private sector admitted the martial law is necessary now although it may have negative impacts on the national image, urging for a quick revocation of the martial law. (TNA)