Stock investors in Asia have fled equity market on concern more global financial firms will collapse after teh US government took over American International Group Inc, and Morgan Stanley was said to be seeking a buyer. Shares in the two largest independent US investment banks left standing after recent collapse of Lehman Brothers, - Morgan Stanley and Goldman Sachs - fell 24 per cent and 14 p er cent, respectively.
The SET index was closed at 574.42 at first trading session with trading value of Bt8.54 billion, while stock markets across Asia also dropped into red zone. As of 12.52 pm Hong Kong's Hang Seng fell 7.38 per cent to 1,636.14, while Indian stock market, Mumbai Sensex dropped 4.31 per cent 12,691.11. Other Asian markets fell around 1.8-4 per cent. Japanese stocks fell toward a four-year low.
Investors short equities and dollar-denominated assets to avoid all types of risk and shift for safer assets like gold, bonds, and cash.
Local gold bar jumped significantly from Bt12,850 closed yesterday to Bt13,700 this morning and Bt13,550 at noon.