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SEC warns against panic selling

“The nosedives in the SET index, gold and silver prices are in line with global levels. The SEC has closely monitored the situation and would like to assure all of the stability of the trading, settlement and delivery system as well as the financial stability of facilities like the depository centre, securities companies, mutual fund comapnies and futures brokerage houses,” SEC Deputy Secretary-General Chalee Chantanayingyong said in a statement.

He urged investors to thoroughly consider all information. “They should not be panic, as the country’s economy is on the growth track while listed companies are financially strong”.

Aside from the midday loss of over 7 per cent in the stock market, the futuers exchange also suffered from volatility.

Thailand Futures Exchange temporarily suspended trading of all silver futures again today, the second time this month.

The first halt took place on Sept 23, following the sharp fall in silver.

Execution prices of the futures decreased by 10 per cent from the latest settlement price due to falling global commodities and silver prices. The 10 per cent fall triggered the circuit breaker.

At 9.45am today, the circuit breaker was turned on again. The market resumed at 10.15am, when the daily price limit of all silver futures is expanded to 20 per cent (plus or minus) of the latest settlement price.

Silver prices have plummetted along with gold prices, which are traded much below US$1,920 peak level. As the world is heading towards a gloomier direction, global investors are now inclined to hold on dollar assets rather than risk assets including commodities.

Source: The Nation

ThaiVest Editorial Team

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