8:58 pm - Sunday September 25, 2016

Shares plunge, gold skyrockets

Shares plunge, gold skyrocketsFollowing the near 6 per cent plunge in Dow Jones Industrial Index to lower than 11,000 points last night, the Stock Exchange of Thailand Index opened with a steep loss

. It opened 40 points lower to narrowed the loss to 34.32 points as of 11.34am. At 1,043.87 points, the index is now well below the 1,050 support level.

As the morning session, the index recouped some losses, shedding only 26.39 points or 2.45 per cent to 1,051.80 on turnover of Bt31.3 billion.

Tisco Securities anticipated sell-offs in the morning, but expected the index to end the day above 1,050-1,060 points. Foreign investors should return after net-sells of Bt11.4 billion in the past two trading days. During June 28-August 4, foreign net-buys totalled Bt50.5 billion.

Gold prices however climbed in line with international markets. As gold prices rreached a new historic high at US$1,714 per ounce yesterday, domestic gold prices, which were subjected to 10 adjustments yesterday, are on the rise. According to the Gold Traders Association, as the spot value hit a new high of $1,770 per ounc, gold prices fluctuated wildly.

To day, the association has so far raised gold prices 14 times, as of 2.51pm; ten for the combined increase of Bt1,050 and four for the combined cut of Bt450.

Gold bar prices swung from Bt24,700 to Bt25,150 per baht weight, as spot prices ran wildly from $1,744 at the open to peak at $1,770 before easing to $1,751 at 2.51pm.

Global investors were nervous as Standard & Poor’s Ratings Services cut the US credit rating from top “AAA” for the first time in 70 years. They also feared that public debt problems in the euro zone would spread further.

Yesterday, US President Barack Obama assured investors that his country would do anything to restore the “AAA” rating. Meanwhile, the European Central Bank on Sunday also announced the bond-buying programme for Spain and Italy. Their moves clearly failed to restore investor mood.

This news is courtesy of The Nation Online.



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