Dr. Pakorn Peetathawatchai, President of the Stock Exchange of Thailand, stated that the Thai stock market overreacted on the US banking crisis, while trying to calm the panicking market by pointing out that there are signs of recovery in the U.S. and Europe.
Thailand’s main bourse SET Index fell 50 points or 3.13% to close at 1,523.89 points yesterday, which was in the same direction as regional markets that fell 2-3%. The Thai market was pressured by a selloff in energy stocks after Brent crude dropped 2.1%, along with retail and electronic stocks in concerns of slower global economic growth amid high interest rates and diminishing liquidity.
The president noted that the U.S. and U.K. were fast to react to the crisis as regulators took control of the matter. He believed that the banking crisis would not be contagious.
Meanwhile, the Bank of Thailand also reiterated that the capital base is strong enough to cushion any impact that might occur.