absolutelyBangkok archive · Business & Economics
Originally published Oct. 16, 2009
The 3rd anniversary of the coup was the day of His Majesty the King’s recent hospitalization. A telling day, with HM’s fragile health reflecting his kingdom’s health. So far daily updates by the palace did not allay fears about the king’s well-being.
On Oct. 15, nearly a month after the monarch’s hospitalization, the 26th statement of the Royal Household Bureau on the king’s health rerereassured the kingdom’s subjects that HM the King takes more food. Still, uncertainty prevails.
The subsequent pressure on the Thai stock market didn’t make the deplorable rumors go away. Some predictably blamed evil foreigners playing tricks on the Thai public and nation. Current Thailand’s back in a state of hush-hush where so much wants to be said, but nothing is, fueling the rumor mill even more.
Meanwhile, at this week’s
Expat Society event bringing together the kingdom’s supposedly leading expats, the rumor mill got out of hand. A European ambassador assured in confidence “it’s all nonsense” while “two rumors,” assured one expat, spoke of HM’s passing.
What seems to be a lack of transparency for outsiders is perfectly transparent by Thai standards. Subjects are assured all along HM is fine.
With the world watching the palace then affirmed in a beautifully worded statement that the king’s “general condition is good. However, lung inflammation which has reduced will require some time to fully recover, as is the case for the elderly.”
For the elderly.
I’m not aware of any similarly tender, affectionate and yet humanizing statement by the palace. These three words really got me.
Maybe the palace will release a highly anticipated photo of HM to lay the speculation to rest. Maybe not. While a nervous market has spoken that the king’s health is a reflection of Thailand as a whole.
Investors should keep their cool, renowned Thai stock market analyst Paul A. Renaud of ThaiStocks.com tells absolutelyBangkok.com.
“The Thai market is spooked as it’s concerned about the true state of the health of the king,” explains Renaud. “Foreigners are so nailing down good profits — as this recovery year is soon coming to an end. Markets are always forward looking. Thai stocks and its baht currency have been among the strongest in the region and more than some believe it’s just time to take profits, especially in light of ongoing domestic political bickering up and down.”
“In bull markets it’s not unusual to see sudden sharp drops like this, i.e. corrections. But I for one remain medium term bullish as the economy here is back on an upward move and dividend yields are far above bank deposit interest rates.”
Concludes Renaud: Investors should focus on high yielding stocks, as those have a strong underlying income yield. Investors should not panic, as stocks are already cheap and have partially discounted the known eventuality. The economy and so company profits are on the rebound, which is much different than a year ago. It’s a rare opportunity in getting some true value investor bargains.”
Partially discounted the known eventuality.
Wishing HM the King a speedy recovery we send our best wishes.
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