Banks hit the road to boost confidence
Some bigger banks are heading off on international road shows in a bid to restore foreign confidence in Thailand following the negative effects of the Bangkok bombings and the central bank's currency-control moves.
Bangkok Bank travelled to Singapore this week, where it explained to investors details of the Bank of Thailand measures. The BOT controls mean foreign investors who bring in US$20,000 (Bt716,100) or more must park 30 per cent of the amount in financial institutions. The measure took effect on December 19. Following the introduction of the BOT controls, Bangkok Bank was flooded with questions from foreign investors. It decided to use the road shows to explain the situation, executive vice president Bordin Unakul said. He added that the New Year's Eve bomb attacks in the capital were of lesser concern to foreign investors although they remained a significant negative factor. He said that in spite of BOT clarifications about the controls, investors needed more information, particularly about how they would affect portfolio allocation in separate financial products. The bank hopes the road shows will help investment sentiment as a whole even if they do not directly benefit Bangkok Bank's share price. Large overseas investors normally buy sector funds or country funds. "Once foreign investors have more confidence in Thailand, it will benefit the Stock Exchange of Thailand and the prices of listed companies," he added. Siam Commercial Bank CEO Khunying Jada Wattanasiritham said it was considering road shows, too. It will announce its 2006 earnings over the coming weeks. "The bank hasn't decided about a road show yet. We want to wait and see how the environment works out. The bank cancelled a September road show following the military coup," she said. She said road shows would not directly benefit the bank's share price and were normally undertaken to inform investors about bank business plans and progress and build in-vestor confidence. Kasikornbank has no plans for a road show at present following those of late last year to present its 2007 business strategy. During the past two weeks the share prices of the three largest banks have plunged around 20 per cent each, due mainly to the BOT's actions and the Bangkok blasts.
Somruedi Banchongduang The Nation
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