Business News
Thai market rebounds 3.52 per cent on rumour denials
Oct 16, 2009, 10:12 GMT
Bangkok - Thai shares rebounded 3.52 per cent Friday after tumbling 7 per cent over the two previous days of trading because of rumours about the king's health, brokers said.
The Stock Exchange of Thailand (SET) index ended at 717.12, up 24.40 points or 3.52 per cent, on share transactions worth 29 billion baht (878.8 million dollars).
On Wednesday, the SET fell 2.04 per cent and on Thursday it was down 5.3 per cent as a result of massive sell orders from foreign investors on a panic fuelled by rumours about the declining health of Thai King Bhumibol Adulyadej, 81, who has been in hospital since September 19.
The rumours appear to have originated abroad.
Thai Finance Minister Korn Chatikavanich held a press conference Friday morning at which he denied the rumours and promised to investigate who was behind them.
'This provided a psychological boost for investors and gave them the confidence to buy,' said Chaiyos Jiwangkul, an analyst at Country Group Securities.
King Bhumibol was admitted to hospital for treatment for a lung infection, but according to statements issued by the Royal Household he is recovering well, although slowly.
The monarch is seen as an important contributor to Thailand's political stability.
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