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Tuesday, September 19, 2006

What Investors Did on News of a Thai Coup

Traders often play coups and natural disasters, quite often while the details aren't even known.

If you have been watching wires, you will notice that there has been a coup in Thailand. Unfortunately it is not possible to access news sites in that country. The Thai Capital Fund (TF) has lost 7% to $9.42 on only 21,800 shares. Also the Thai Fund Inc. (TTF) is off 5.4% to $8.50 on 1.07 million shares.

It should be known that the Prime Minister of Thailand is currently in New York at a Union Nations Assembly. After trying to access news sites within Thailand they are not currently accessible. That may just be from a flood of data traffic, and it may be from access being pulled. That just is not known.

Elections going against the pro-business factions of a country are rarely good for stocks, and military coups are far worse. We do not even want to speculate on the current situation because there just isn't any good data. It is currently 11:47 PM EST in Bangkok, so it is going to be very difficult to get any solid data that is reliable since everyone is at home right now.

It appears as though military and police have seized control of Bangkok in a coup against Prime Minister Thaksin Shinawatra. According to reports a flash on national TV said that forces loyal to the king had taken control of Bangkok to maintain law and order.

Thaksin Shinawatra had been scheduled to address the annual General Assembly on Wednesday, but the order of speeches was altered and he will instead speak Tuesday evening.

According to CNN: Members of the Thai military are trying to seize power but Thailand's leadership expects everything to return to normal soon, Deputy Prime Minister Surakiart Sathirathai told CNN.

This is still a developing situation and it is possible that it has been exaggerated, but right now the details just aren't known. Because of the clock, we may not know any details until several hours from now.

Jon C. Ogg
September 19, 2006
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