BANGKOK – Activity on the SET came to a halt today when the government announced strict new rules designed to prevent a repeat of last month’s sell off, caused by malicious rumors about His Majesty the King’s health.
Under broad new trading rules, selling stocks is now illegal and punishable by five years in jail or a ฿100,000 fine, or both. The rules are designed by police to counter the “threat to national security” that might be caused by rumors.
However, without a legal option to sell stocks, it is now impossible to buy them as well. The SET has therefore had no activity whatsoever since its opening this morning.
Futures on Thai stock funds that are traded on overseas bourses were very active, however, losing on average 97% of their value in day trading as foreign investors dumped anything remotely related to Thailand.
A spokesperson for the police admitted that the “no sell” rule might have been poorly planned, in light of the need for selling to facilitate buying. However, he pointed out to the stable SET prices as evidence that they were doing the right thing.
