Sunday, November 9, 2008

Political uncertainty scares investors away

Our comments:  This story from the Bangkok Post is the opposite of comments made by the Thai Finance Minister last week on Bloomberg Asia.  I personally think the man is better suited as a tour guide somewhere on Phuket because anyone who watched him knew he was a total joke...

Foreign investors are reluctant to invest in the Stock Exchange of Thailand (SET) due to political uncertainty in Thailand, said Anon Sirisaengthaksin, the chief executive officer of PTT Exploration

& Production (PTTEP), the exploration arm of Thailand's former petroleum state enterprise.

Mr Anon said he had recently promoted investment in Thailand during sponsored roadshows to Singapore and Dubai.

Investors in those countries said would like to invest on the Thai bourse, especially in PTTEP, with a strong record of business and financial performance, the foreign investors remain reluctant because they do not know whether they can repatriate money from Thailand if there is a political change in the kingdom, Mr Anon said.

They are prepared to invest in SET if the political conflict ends although the market is being affected by the global financial meltdown, he said.

Touching on declining oil prices in a world market in which futures in Brent crude retreated to US$58 per barrel, its lowest in the past 21 months due to worries over the global economy, Mr Anon said he believed the crude price would not drop much further due to high production costs, while at the same time the Organization of Petroleum Exporting Countries (OPEC) plans to issue more measures to prevent prices from falling further.

OPEC is expected to reduce its crude production to shore up prices after having recently cut production by 1.5 million barrels daily, he added. (TNA)

No comments: