The Finance Ministry, in conjunction with the Stock Exchange of Thailand, hosted the "Thai Equity 2006: Investor Forum". Ten large listed firms plus the state-owned Government Housing Bank staged presentations in 141 one-on-one meetings with investors.

The road show was aimed at restoring foreign investors' confidence in the Thai market amid Thailand's growing political troubles.

Merrill Lynch and Phatra Securities Plc were the key arrangers, inviting 34 foreign institutional investors to participate.

Temasek Holdings also took part in the forum but did not attend any one-on-one meetings, because its officials left following a speech by caretaker Finance Minister Thanong Bidaya in the morning.

Phatra Securities Plc managing director of research Supavud Saicheua said most questions involved if and when a general election would be held, when the political situation would return to normal, the impact of politics on the economy, how the current caretaker government would deal with these issues and whether any more key economic policies would be implemented.

He said the micro-issues involving listed firms were much clearer in the view of foreign investors.

Foreign investors have shed their Thai stocks over the past three or four months out of concern over global issues including rising oil prices, interest-rate uncertainties and the impact of the global economic slowdown on emerging markets. But the political issue in the Kingdom is an additional, unique problem affecting the Thai bourse.

Supavud said the property sector garnered the most interest at the road show.

For example, Asian Property Development Plc recorded 18 one-on-one meetings, the same number as for AOT.

He said the high interest in the property sector was because it represented overall spending power, and its prices had already declined to an attractive level, while AOT has its own new issues, including the new Suvarnabhumi Airport.

Preuksa Real Estate Plc attended 16 one-on-one meetings, while Krung Thai Bank attended 14.

Thanong insisted in his speech to investors that a general election would occur before His Majesty the King's birthday on December 5 and that violence would not disrupt the country's democratic system.

Before the forum began, he said: "I believe there will be no violence or coup. It won't happen again, because the public doesn't want it... Some might want to take a shortcut, but I can tell them it won't work.

"I would like to explain to foreigners that all of the political activities performed by any party - the government, non-governmental organisations, the opposition - to date have been done in a democratic manner... Investors will understand that there's nothing too severe. But if they should decide to wait and see [what will happen with the Thai market], that will be okay."

The caretaker finance minister said he would seek to explain all of the issues involving politics, including the constitutional limitations that have contributed to the political uncertainty. He said he would also go more into the current strong economic fundamentals, including how the government would try to disburse the 2007 fiscal budget after its expected six-month delay.

But whether the caretaker government proceeds with bidding for mega-project investment depends on public sentiment.

Other participants in the road show included Bangkok Bank, Krung Thai Bank, TMB Bank, Electricity Generating Plc, PTT Plc, MCOT Plc and Thai Airways International Plc.

Asian Property Development CEO Anuphong Assavabhokhin said following meetings with several foreign-fund managers that a lot of the interest in the property sector was due mainly to the sector's lower share prices.

The first question investors asked about Thailand's property market was whether consumer demand for houses was affected. Anuphong said he insisted that demand for Thai houses remained high but home-buyers were hesitant about making a decision right now.

"A lot of people still visit our sites but hesitate to buy. Before, 10 people would walk in, and seven of them would buy a house. Now, 10 still walk in, but only four will buy," said Anuphong.

Small land developers have disappeared from the market, and Anuphong said he believed that with fewer players the remaining ones would benefit greatly once the market recovered. He said listed land developers now held a larger market share of 65 per cent, compared with 40 per cent three years ago.

Jiwamol Kanoksilp

The Nation

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