Bangkok--13 Oct--SET The Stock Exchange of Thailand (SET) ( Friday, October 10, 2008) met with representatives and members from the Association of Securities Companies, the Foreign Borkers Club, the Association of Investment Management Companies and the Securities Analysts Association to discuss the impact of the U.S. financial crisis on the Thai capital market. SET Chairman Pakorn Malakul Na Ayudhya said that a continued fall in the SET index by 41.73 points from the beginning of the year until last Thursday (October 9), significantly lowered the market capitalization by about 41%, to around THB4 trillion (about US$115.94 billion). However, this drop has been in line with losses of between 30% and 60% on global stock markets and are mostly likely due to the fallout from the U.S. financial crisis Chairman Pakorn, SET President Patareeya Benjapolchai, and other SET senior executives met with representatives of local and foreign securities companies, fund management companies and stock analysts to discuss ongoing market losses. The chairman added that, “In addition to the current market crunch, the Thai stock market has also been affected by the ongoing political turmoil. However, SET does not think that it will have to shut down trade just yet as there remain a number of savers switching to invest in stocks with good fundamentals and high dividend yields of more than 10% after all this time. The SET will now discuss with the Securities and Exchange Commission (SEC) and the Commerce Ministry how to adjust share buy-back regulations so that listed companies can carry out plans more conveniently. This followed notification by 14 firms to SET of intentions to buy back their shares, with many more still waiting in line. Mr. Pakorn added that “People at today’s meeting agreed that the current regulations of the SET are appropriate and meet international standards and that the Thai bourse will be able to cope with the current situation well. “They also conceded that the current global financial crisis has significantly hurt both Thai and foreign investor sentiment and led to volatile trade in response to news and reports from within the country and abroad. Therefore, investors should be more careful while trading and focus on stocks with sound fundamentals while keeping a close eye on all developments. Herewith, Securities Analysts Association will review all factors before issuing a new assessment of stock prices for investor reference.” The meeting also agreed that all securities companies and fund management companies still possess strong financial positions, while SET’s and member companies’ trade systems, including payment and settlement and systems, are ready to cope with stock trade fluctuation. In addition, Mr. Pakorn reported the meeting’s conclusion that short selling has never had a major impact on Thai stock trading, as it represented only 0.6-0.7% of present total monthly trade value, while Thailand’s regulations are quite different from other markets. SET allows short-selling only of liquid, big-cap SET50 stocks and only at prices equal to or higher than the last trading price. Total margin loans in the entire Thai stock market system currently amount to THB27 billion (about US$782.60 million), which is considered normal, while forced selling has been at normal, not crisis, levels, Mr. Pakorn noted. Moreover, the meeting proposed that the Finance Ministry consider more tax incentives to promote investment, such as dividend tax privileges or tax waivers for bond and debenture investments, and to review a plan to set up mutual funds so that parents can plan for the education of their children. “It is expected that before the end of the year, at least THB10 billion worth of LTF and RMF investment should flow into the Thai capital market, which would be similar to the 2007 level,” Mr. Pakorn told the meeting attendees. Regarding the THB8.25-billion matching fund investment, SET is ready to increase its investment volume through collaboration with the Association of Securities Companies, the Securities Analysts Association and the Association of Investment Management Companies, to enable investors to increase their stakes, Mr. Pakorn said. “The Stock Exchange of Thailand will continue to provide information to investors, particularly the impact from the U.S. economic turmoil and the domestic political instability, with constant assessments of the situation. Measures to curb widespread damage to local stock trading will be made as needed”, concluded Mr. Pakorn. For more information, please contact the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 / Watsamon Saowakhonsathien Tel: 0-2229-2797