It was Black Tuesday for Thailand’s stock market as it plunged as low as 18% before closing down 14% lower – the worst fall in 16 years! The impacts are felt throughout the region with most Asian stock markets shedding 2%.
Is this the start of Asian Crisis part II? The panic selling is precipitated by Thai junta’s ruling of Thai bath restriction – forcing many institutions to hold 30% of the investment for at least a year in the country to restrict capital outflow from the country. Little is known why such a draconian measure must be taken. But the effect is clear, trading in the country had to be suspended intra-day to limit the sell offs – the first in its 31 years history! Out of 481 stocks traded in SET, only 8 posted gains, 13 unch and 460 posted losses.
Tomm will be an interesting scene to watch in the financial market!
Update: it looks like the ‘disaster’ was only temporary…and today the markets have rebounded….thank goodness