Thailand’s bad karma : nomination of PM = stocks of his family’s companies jump…

If you want one fact that could synthetize the main problem of Thailand (corruption) well you’re lucky today.

Consider this news :

Wyncoast Industrial Park Plc and MLink Asia Corp Plc stocks, politically connected to Somchai Wongsawat, the acting prime minister, jumped significantly on speculation that he would become Thailand’s next prime minister.

MLink stock prices jumped 21.48 per cent at the end of the first trading session to close at Bt1.64, while Wyncoast stock rose dramatically by around 40 per cent to Bt0.99.

The two stocks enjoy strong price surge although the general sentiment of the stock market is depressed by the financial sector turmoil in the US surrounding the collapse of Lehman Brothers.(Nation)

There is a golden rule : money doesn’t lie. Money can be wrong, sure, but money never lies.

If people bet on those companies… they are sure that they will be rewarded… sure those businesses would profit from the nomination of the wannabe Prime Minister . 😉

Call it the system, the tradition…

The Prime Minister could be Khun A, B, C, or D, or even E, it doesn’t matter. It’s irrelevant. The rule is : his family, his “circle” would profit. In one form or in another.

Here is the core of Thailand’s bad karma. 😉

PS : don’t get me wrong, I don’t say that Wyncoast Industrial and MLink are bad bets. They could be intrinsically good companies with bright perspectives. What I criticize is the of course the automatic reaction, the cause and effect link : people talk about Somchai as Prime Minister… boum… 24 hours later, Wyncoast and MLink take 40 and 20 %.

2 Responses to “Thailand’s bad karma : nomination of PM = stocks of his family’s companies jump…”

  1. 1 chinesethai 16 September 2008 at 4:55 am

    Thank you about your note on M-Link share price.

    You are right that a nomination or a “dis-nomination” of Khun ABC is one way or another will benefit them one way or another.

    Thai politicians find the stock market a magic way to fund their campaign.

    PM Wongsawat = profit + profit
    Dissolving parliament = no losses

  2. 2 Bedwyr 16 September 2008 at 4:26 pm

    Plus… dissolving parliament = no snouts in the public trough. Can’t have that. Nossir. “We have to recoup our ‘investment’ first, dissolve it in 3 months”.


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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