CIMB Group Holdings Berhad announced today that it will pursue a dual listing of its shares on The Stock Exchange of Thailand (SET). A leading regional universal bank currently listed on Bursa Malaysia, CIMB Group is the first foreign corporation to announce a listing plan since the Securities and Exchange Commission of Thailand (SEC) and SET approved their new guidelines for foreign listings in October 2009. The regulations will be effective from 1 December 2009.
“This move amplifies our commitment to Thailand,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group. “The listing will enhance our profile to investors and the general public in Thailand and make it easy for them to be able to invest in the growth of a regional bank,” he said.
“The Stock Exchange of Thailand truly welcomes CIMB Group as our first foreign listing,” said SET President Patareeya Benjapolchai. “As CIMB Group is a leading financial group in the region, its listing will offer Thai investors an alternative worthy of consideration and will raise the profile of the Thai market in the eyes of fund managers worldwide. We are ready to support the company in the listing process to realise its intention,” she said.
Based on CIMB Group’s market capitalisation of USD13.7 billion (THB455.9 billion) as at the close of trading on 13 November 2009, the company would be among the 3 largest companies on SET and the largest financial services group.
CIMB Group is already present in Thailand via its 93.15%-owned subsidiary, CIMB Thai Bank PLC, which is also listed on SET. “CIMB Thai will continue to be listed on SET for now,” said Subhak Siwaraksa, President and CEO of CIMB Thai. “However CIMB Group’s proposed listing would be an opportune time for us to reconsider this in consultation with our shareholders,” he explained.
To facilitate the dual listing, CIMB Group plans to undertake an initial public offering (IPO) of up to 35 million CIMB Group shares. The shares will be made available to retail and institutional investors in Thailand, which may include customers, staff and/or minority shareholders of CIMB Thai.
The dual listing is expected to complete in the first half of 2010, subject to approvals from CIMB Group shareholders and regulatory authorities in Thailand and Malaysia.
About CIMB Group
CIMB Group is Malaysia’s second largest financial services provider and one of Southeast Asia’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, its key regional offices are located in Singapore, Indonesia and Thailand.
CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the majority shareholder of Bank CIMB Niaga in Indonesia, and CIMB Thai in Thailand.
CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad (formerly known as Bumiputra-Commerce Holdings Bhd). It has a market capitalisation of approximately RM46.3 billion as at 13 November 2009. The Group has over 36,000 employees located in 9 countries.
About Foreign Listing Regulations of Thai SEC and SET
The new regulations were approved by the SEC and SET in October 2009 and will be effective from 1 December this year. In the first phase, the SET will allow only dual listing of the listed company where the home exchange is a member of the World Federation of Exchanges (WFE) and the regulator is a member of the International Organization of Securities Commissions.(IOSCO). The market capitalization of the company should be either over THB 10 billion or such that the firm is in the first quartile of listed companies in its home exchange.
For more details of the regulations, please go to www.sec.or.th and www.set.or.th
Saturday, November 21, 2009
Friday, November 13, 2009
BANPU SETS BT15.5-BN INVESTMENT PLAN FOR THE NEXT SIX YEARS
Banpu has set an ambitious US$466 million (Bt15.8 billion) investment plan over six years from 2010-2015 to cope with increasing demand for coal and power.
The International Energy Agency forecasts Asean's energy consumption rising 2.1 per cent a year until 2030. Energy consumed by the 10 country members of Asean may increase by 76 per cent from 2007 to 2030 because of economic expansion. Investment in the sector would be $390 billion higher than the reference case.
Banpu CEO Chanin Vongkusolkit said yesterday that the coal mining business has room to grow for at least for 10-20 years. The six-year investment plan covers coalmines in Indonesia worth $190 million, coalmine expansion in China worth $22 million and the Hong Sa hydropower project in Laos, which is expected to begin operations in 2015.
The coalmining business is now in focus again, thanks to high demand in 10-20 years, and the company might spend more on improving human resources and technology to prepare for the coal business, he said. Coal sales could rise to 33.5 million tonnes in 2015 from 23.3 million tonnes at present.
Banpu expects the coal price next year to decline to $60 per tonne from $71-72 this year, but it may consider selling premium coal next year to boost its average coal price to above $70.
Under the investment plan, the power business should generate 10-15 per cent of total sales in 2015 from the current level of 30 per cent. Early this year, Chanin said the company is bidding on three to four power plants and two to three coalmines. Those projects are excluded from the six-year investment plan.
Banpu posted consolidated third-quarter net profit of Bt3.8 billion, an increase of 22 per cent from Bt3.11 billion the year before. Earnings were boosted by higher coal sales from Indonesian coalmines and a gain from financial derivatives, mostly coal swaps.
"Coal sales volumes in the third quarter were 5.31 million tonnes, an increase of 15 per cent from the same period last year and 18 per cent from the previous quarter, thanks to higher coal sales volumes from Indonesian coal mines.
"In addition to higher quantity of coal sales, financial derivatives especially from coal swaps have helped lift the net profit of the third quarter," he said.
Revenue and profit this quarter would drop from last quarter due to a decline in coal prices in Indonesia and the shutdown of the BLCP power plant for maintenance, as well as reduced coal production in China, he said.
Banpu targets revenue this year at Bt57 billion, up from Bt56.83 billion last year.
Banpu's stock price closed yesterday at Bt462, up 3.12 per cent from Tuesday. Most of the 13 energy stocks posted increases in third-quarter net profits. Their combined net profit was Bt39.57 billion, up 53.36 per cent from Bt25.80 billion in the same period last year.
PTT, the largest energy firm, and its subsidiaries also saw bigger net profits. Bangchak recorded the highest profit growth - 956 per cent to Bt2.15 billion from a loss of Bt251 million - followed by IRPC with 151.90 per cent to Bt2.29 billion from a loss of Bt4.43 billion.
Ratchaburi Electricity Generating Holding posted the lowest growth at 20.19 per cent to Bt1.65 billion from Bt2.07 billion last year.
The International Energy Agency forecasts Asean's energy consumption rising 2.1 per cent a year until 2030. Energy consumed by the 10 country members of Asean may increase by 76 per cent from 2007 to 2030 because of economic expansion. Investment in the sector would be $390 billion higher than the reference case.
Banpu CEO Chanin Vongkusolkit said yesterday that the coal mining business has room to grow for at least for 10-20 years. The six-year investment plan covers coalmines in Indonesia worth $190 million, coalmine expansion in China worth $22 million and the Hong Sa hydropower project in Laos, which is expected to begin operations in 2015.
The coalmining business is now in focus again, thanks to high demand in 10-20 years, and the company might spend more on improving human resources and technology to prepare for the coal business, he said. Coal sales could rise to 33.5 million tonnes in 2015 from 23.3 million tonnes at present.
Banpu expects the coal price next year to decline to $60 per tonne from $71-72 this year, but it may consider selling premium coal next year to boost its average coal price to above $70.
Under the investment plan, the power business should generate 10-15 per cent of total sales in 2015 from the current level of 30 per cent. Early this year, Chanin said the company is bidding on three to four power plants and two to three coalmines. Those projects are excluded from the six-year investment plan.
Banpu posted consolidated third-quarter net profit of Bt3.8 billion, an increase of 22 per cent from Bt3.11 billion the year before. Earnings were boosted by higher coal sales from Indonesian coalmines and a gain from financial derivatives, mostly coal swaps.
"Coal sales volumes in the third quarter were 5.31 million tonnes, an increase of 15 per cent from the same period last year and 18 per cent from the previous quarter, thanks to higher coal sales volumes from Indonesian coal mines.
"In addition to higher quantity of coal sales, financial derivatives especially from coal swaps have helped lift the net profit of the third quarter," he said.
Revenue and profit this quarter would drop from last quarter due to a decline in coal prices in Indonesia and the shutdown of the BLCP power plant for maintenance, as well as reduced coal production in China, he said.
Banpu targets revenue this year at Bt57 billion, up from Bt56.83 billion last year.
Banpu's stock price closed yesterday at Bt462, up 3.12 per cent from Tuesday. Most of the 13 energy stocks posted increases in third-quarter net profits. Their combined net profit was Bt39.57 billion, up 53.36 per cent from Bt25.80 billion in the same period last year.
PTT, the largest energy firm, and its subsidiaries also saw bigger net profits. Bangchak recorded the highest profit growth - 956 per cent to Bt2.15 billion from a loss of Bt251 million - followed by IRPC with 151.90 per cent to Bt2.29 billion from a loss of Bt4.43 billion.
Ratchaburi Electricity Generating Holding posted the lowest growth at 20.19 per cent to Bt1.65 billion from Bt2.07 billion last year.
MADOFF'S JEWELLERY, FINERY TO BE AUCTIONED
The trappings of Bernard Madoff's once luxurious lifestyle - jewels, furs and expensive trinkets - will be auctioned on Saturday in New York to benefit victims of Wall Street swindler.
The catalogue contains almost 200 lots reflecting the gaudy life enjoyed by Madoff and his wife Ruth as a result of his decades-long, multibillion dollar Ponzi scheme.
That includes no less than 17 Rolex watches, diamonds, fur coats, Hermes and Louis Vuitton handbags, crocodile-skin belts, golf clubs and numerous items of jewellery.
On a more personal note, there will be a blue satin Mets baseball team jacket emblazoned with "Madoff" on the back. Estimated price: $500-$720 (Bt16,650-Bt24,000).
The Madoff name appears on many other goods, ranging from beach boards to personal stationary.
Gaston and Sheehan auctioneers are handling the sale at a Sheraton hotel in New York, but the goods were seized by the US Marshals Service to raise compensation for hundreds of investors cheated by Madoff.
Pre-auction estimates by Gaston and Sheehan predict sales of about $500,000.
Properties, including a Manhattan penthouse and Palm Beach retreat, have also been seized. A Long Island beach getaway sold for $8 million.
Madoff, now serving a 150-year prison sentence for fraud, claimed just before his arrest last December to have been managing $65 million. However, much of that appears to have comprised fraudulent funds.
The court-appointed liquidator says that investors lost $21.2 billion cash.
The catalogue contains almost 200 lots reflecting the gaudy life enjoyed by Madoff and his wife Ruth as a result of his decades-long, multibillion dollar Ponzi scheme.
That includes no less than 17 Rolex watches, diamonds, fur coats, Hermes and Louis Vuitton handbags, crocodile-skin belts, golf clubs and numerous items of jewellery.
On a more personal note, there will be a blue satin Mets baseball team jacket emblazoned with "Madoff" on the back. Estimated price: $500-$720 (Bt16,650-Bt24,000).
The Madoff name appears on many other goods, ranging from beach boards to personal stationary.
Gaston and Sheehan auctioneers are handling the sale at a Sheraton hotel in New York, but the goods were seized by the US Marshals Service to raise compensation for hundreds of investors cheated by Madoff.
Pre-auction estimates by Gaston and Sheehan predict sales of about $500,000.
Properties, including a Manhattan penthouse and Palm Beach retreat, have also been seized. A Long Island beach getaway sold for $8 million.
Madoff, now serving a 150-year prison sentence for fraud, claimed just before his arrest last December to have been managing $65 million. However, much of that appears to have comprised fraudulent funds.
The court-appointed liquidator says that investors lost $21.2 billion cash.
Sunday, November 8, 2009
Wall Street rally fades as Fed offers no surprises
Wall Street saw a rally fizzle Wednesday in a muted reaction to a Federal Reserve decision to maintain its present course of stimulating the economy with low rates and extra liquidity.
The Dow Jones industrial average, up more than 150 points after the Fed described the US economy as showing more signs of recover y, closed up 30. The broader indexes were narrowly mixed.
Analysts couldnt point to any one reason why stocks gave up their gains, although some said the market is increasingly nervous as the release of the governments October jobs report today approaches. Financial stocks fell especially hard in the last hour of trading after a House vote to speed up the effective date of limits on credit card companies, and added to the overall markets pullback.
The Fed, as expected, left its benchmark interest rate unchanged at a record low of essentially zero and said the economy is slowly rebounding. Its announcement followed reports on service industries and employment that eased two of the biggest worries about the economy.
The Feds statement accompanying its rate decision noted that housing activity has picked up in recent months. It also said consumer spending, while still constrained by unemployment and other problems,appears to be growing.
Policymakers said they would keep interest rates low for anextended period and said inflation is likely to remain tame. That eased some worries that rising prices would force the Fed to boost interest rates and risk cutting off a nascent recovery in the economy.
But, as often happens after Fed meetings, stocks were unable to hold their gains. The Fed statement,while more upbeat than in recent months, did note that there are ongoing job losses. And investors were well aware that the Labour Departments October jobs report is just two days away.
Meanwhile, the House approved new rules for credit card companies unless lenders agree to freeze interest rates and fees. The vote would move up the February effective date of legislation already passed by Congress that limits what banks can charge for credit cards.
It didnt appear likely that the Senate would also pass the measure, but the House vote still sent financial stocks falling. And when bank stocks fall, the rest of the market tends to follow.
The Dow rose 30.23, or 0.3%, to 9,802.14. It had been up as much as 156 after the Fed announcement.
The broader Standard & Poors 500 index rose 1.09,or 0.1%, to 1,046.50, and the Nasdaq composite index fell 1.80, or 0.1%, to 2,055.52.
Winning stocks were ahead of losers by 8 to 7 on the New York Stock Exchange, where volume came to 1.35 billion shares. The Fed appeared more upbeat than investors by the end of trading Wednesday.Its definitely dovish. We think it supports continued market progress over the next few months,said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
But investors have grown fearful that the economic rebound theyve been betting on over the past eight months will be fleeting, consider ing that job losses remain high and consumers still arent spending freely.Stocks have zigzagged over the past few weeks amid the heightened uncertainty.
The days economic reports bolstered hopes that consumers could increase consumer spending, a critical factor for an economic recovery.
The Institute for Supply Management said service industry activity grew for a second straight month in October. The trade groups service index slipped to 50.6 from 50.9 in September. A reading above 50 signals growth.
The index didnt meet forecasts but the ISM said new orders, which are an indicator of future business activity, grew faster. Business activity also picked up.
Encouraging news about the labor market also boosted investors mood. The ADP National Employment Report said 203,000 private sector jobs were lost in October, down from the 227,000 lost in September. It was the seventh straight month of declining job losses. That stirred hopes for a better-than-expected employment report from the Labour Department today.
The dollar fell against other major currencies, helping to send commodities prices higher.
Gold rose as high as $1,096.50 an ounce. Crude oil added 80 cents to $80.40 a barrel on the New York Mercantile Exchange as the government said US crude supplies fell more than expected. AP
LONDON 5,107.89 +70.68
Britains leading shares ended 1.4% higher on Wednesday boosted by a rebound from miners and banks, with retailers Next and Marks & Spencer also higher after posting forecast-beating figures.
At the close, the FTSE 100 was up 70.68 points at 5,107.89, recouping all of Tuesdays losses when the index fell 1.3% to its lowest closing level in a month.
In Frankfurt, the DAX index ended at 5,444.23 points,up 90.88 or 1.70%. In Paris, the CAC-40 index closed at 3,670.33 points, up 86.08 or 2.40%.Tuesdays fall looked to have been overdone, and shares have bounced back but confidence remains fragile ahead of lastnights news from the Fed and the BoEs pronouncements yesterday, said Mic Mills, senior trader at ETX Capital.
A rebound by mining stocks added the most weight to the blue chip rally, reflecting a rise in metal prices on the back of a weaker dollar ahead of the Federal Reserves statement on interest rates and the economy,due at 1915 GMT.
Fresnillo, Kazakhmys, Antofagasta, Xstrata, BHP Billiton and Vedanta Resources were up 3.3 to 9.2%.
Banks recovered from Tuesdays sharp falls as investors re -evaluated the outlook for the sector following the ฃ31 billion($51.06 billion) in funding from the government agreed for Lloyds Banking Group and Royal Bank of Scotland
RBS added 1.5%, while Barclays, HSBC and Standard Chartered gained 1.4 to 4.2%. But Lloyds shed 1.2% as its record ฃ13.5 billion rights issue weighed on it.Wall Street posted strong gains in early trade on Tuesday, with US blue chips up 1.2% by Londons close awaiting the Fed statement, and after the US Institute of Supply Management said activity in the ser vice sector grew for a second consecutive month.
The Fed is seen affirming its stance that policies to support the economy will stay in place for some time while keeping interest rates near zero.
Yesterday, the BoE is forecast to raise its quantitative easing policy and keep interest rates unchanged.
The British ser vices sector showed its strongest activity since the start of the credit crunch in October 2008, the CIPS/Markit services PMI data showed.
British consumer morale hit its highest levels in the last two months since April 2008, according to the Nationwide Consumer Confidence Index.
Next was a top blue chip gainer, adding 5.6% after the high street retailer reported better-than-expected third-quarter sales and upgraded its sales and profit guidance for the balance of the year.
Retail rival Marks & Spencer put on 6%, as it posted flat first-half profits, near the top end of forecasts as tight management of costs and stocks offset weak sales.
Among other blue chip gainers, Aviva led life insurers higher, adding 5.5%, with the firm shrugging aside results that were slightly below forecasts as investors reacted positively to its solvency position.
Travel firm Thomas Cook jumped 7.4%, lifted by an upgrade from Collins Stewart tobuy, with peer TUI Travel gaining 5.5%.
British Airways took on 6.6% as UBS upped its rating tobuy fromneutral ahead of the airlines second-quarter results, due today.
The Dow Jones industrial average, up more than 150 points after the Fed described the US economy as showing more signs of recover y, closed up 30. The broader indexes were narrowly mixed.
Analysts couldnt point to any one reason why stocks gave up their gains, although some said the market is increasingly nervous as the release of the governments October jobs report today approaches. Financial stocks fell especially hard in the last hour of trading after a House vote to speed up the effective date of limits on credit card companies, and added to the overall markets pullback.
The Fed, as expected, left its benchmark interest rate unchanged at a record low of essentially zero and said the economy is slowly rebounding. Its announcement followed reports on service industries and employment that eased two of the biggest worries about the economy.
The Feds statement accompanying its rate decision noted that housing activity has picked up in recent months. It also said consumer spending, while still constrained by unemployment and other problems,appears to be growing.
Policymakers said they would keep interest rates low for anextended period and said inflation is likely to remain tame. That eased some worries that rising prices would force the Fed to boost interest rates and risk cutting off a nascent recovery in the economy.
But, as often happens after Fed meetings, stocks were unable to hold their gains. The Fed statement,while more upbeat than in recent months, did note that there are ongoing job losses. And investors were well aware that the Labour Departments October jobs report is just two days away.
Meanwhile, the House approved new rules for credit card companies unless lenders agree to freeze interest rates and fees. The vote would move up the February effective date of legislation already passed by Congress that limits what banks can charge for credit cards.
It didnt appear likely that the Senate would also pass the measure, but the House vote still sent financial stocks falling. And when bank stocks fall, the rest of the market tends to follow.
The Dow rose 30.23, or 0.3%, to 9,802.14. It had been up as much as 156 after the Fed announcement.
The broader Standard & Poors 500 index rose 1.09,or 0.1%, to 1,046.50, and the Nasdaq composite index fell 1.80, or 0.1%, to 2,055.52.
Winning stocks were ahead of losers by 8 to 7 on the New York Stock Exchange, where volume came to 1.35 billion shares. The Fed appeared more upbeat than investors by the end of trading Wednesday.Its definitely dovish. We think it supports continued market progress over the next few months,said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
But investors have grown fearful that the economic rebound theyve been betting on over the past eight months will be fleeting, consider ing that job losses remain high and consumers still arent spending freely.Stocks have zigzagged over the past few weeks amid the heightened uncertainty.
The days economic reports bolstered hopes that consumers could increase consumer spending, a critical factor for an economic recovery.
The Institute for Supply Management said service industry activity grew for a second straight month in October. The trade groups service index slipped to 50.6 from 50.9 in September. A reading above 50 signals growth.
The index didnt meet forecasts but the ISM said new orders, which are an indicator of future business activity, grew faster. Business activity also picked up.
Encouraging news about the labor market also boosted investors mood. The ADP National Employment Report said 203,000 private sector jobs were lost in October, down from the 227,000 lost in September. It was the seventh straight month of declining job losses. That stirred hopes for a better-than-expected employment report from the Labour Department today.
The dollar fell against other major currencies, helping to send commodities prices higher.
Gold rose as high as $1,096.50 an ounce. Crude oil added 80 cents to $80.40 a barrel on the New York Mercantile Exchange as the government said US crude supplies fell more than expected. AP
LONDON 5,107.89 +70.68
Britains leading shares ended 1.4% higher on Wednesday boosted by a rebound from miners and banks, with retailers Next and Marks & Spencer also higher after posting forecast-beating figures.
At the close, the FTSE 100 was up 70.68 points at 5,107.89, recouping all of Tuesdays losses when the index fell 1.3% to its lowest closing level in a month.
In Frankfurt, the DAX index ended at 5,444.23 points,up 90.88 or 1.70%. In Paris, the CAC-40 index closed at 3,670.33 points, up 86.08 or 2.40%.Tuesdays fall looked to have been overdone, and shares have bounced back but confidence remains fragile ahead of lastnights news from the Fed and the BoEs pronouncements yesterday, said Mic Mills, senior trader at ETX Capital.
A rebound by mining stocks added the most weight to the blue chip rally, reflecting a rise in metal prices on the back of a weaker dollar ahead of the Federal Reserves statement on interest rates and the economy,due at 1915 GMT.
Fresnillo, Kazakhmys, Antofagasta, Xstrata, BHP Billiton and Vedanta Resources were up 3.3 to 9.2%.
Banks recovered from Tuesdays sharp falls as investors re -evaluated the outlook for the sector following the ฃ31 billion($51.06 billion) in funding from the government agreed for Lloyds Banking Group and Royal Bank of Scotland
RBS added 1.5%, while Barclays, HSBC and Standard Chartered gained 1.4 to 4.2%. But Lloyds shed 1.2% as its record ฃ13.5 billion rights issue weighed on it.Wall Street posted strong gains in early trade on Tuesday, with US blue chips up 1.2% by Londons close awaiting the Fed statement, and after the US Institute of Supply Management said activity in the ser vice sector grew for a second consecutive month.
The Fed is seen affirming its stance that policies to support the economy will stay in place for some time while keeping interest rates near zero.
Yesterday, the BoE is forecast to raise its quantitative easing policy and keep interest rates unchanged.
The British ser vices sector showed its strongest activity since the start of the credit crunch in October 2008, the CIPS/Markit services PMI data showed.
British consumer morale hit its highest levels in the last two months since April 2008, according to the Nationwide Consumer Confidence Index.
Next was a top blue chip gainer, adding 5.6% after the high street retailer reported better-than-expected third-quarter sales and upgraded its sales and profit guidance for the balance of the year.
Retail rival Marks & Spencer put on 6%, as it posted flat first-half profits, near the top end of forecasts as tight management of costs and stocks offset weak sales.
Among other blue chip gainers, Aviva led life insurers higher, adding 5.5%, with the firm shrugging aside results that were slightly below forecasts as investors reacted positively to its solvency position.
Travel firm Thomas Cook jumped 7.4%, lifted by an upgrade from Collins Stewart tobuy, with peer TUI Travel gaining 5.5%.
British Airways took on 6.6% as UBS upped its rating tobuy fromneutral ahead of the airlines second-quarter results, due today.
EC SEEKS COURT RULING ON MANIT SHARE TRADING
The Election Commission will seek a Constitution Court ruling on whether to disqualify Deputy Public Health Minister Manit Nopamornbodi from office for holding shares in companies related to the media or state concessions.
Election Commission secretary-general Suthipol Thaweechaikarn said of 29 MPs the EC had referred for a Constitution Court ruling on whether to disqualify them for holding shares in prohibited businesses, four were ministers: Deputy Transport Minister Kuakul Danchaiwijit, Deputy Interior Minister Boonjong Wongtrairat, Deputy Prime Minister Sanan Kachornprasart and Manit.
The EC panel found that of the four, only Manit held prohibited shares on the day he assumed his ministerial post on December 20 last year. The three others sold the shares before taking up their posts.
Manit held 500 shares in True Corp from December 24, 2002- October 7, 2009 and 4 million shares in TPI Polene from January 21, 2004. He traded some shares 17 times, the latest on December 23 last year.
Suthipol said the EC believed Manit had violated Articles 265 and 267, resulting in disqualification and removal from his ministerial post, in accordance with Article 182 (7).
He denied the EC intended to harass Manit but it needed to check on whether holding prohibited shares should result in him being disqualified as minister.
Manit said he respected the EC's decision but would not resign till the Constitution Court issued its ruling.
He admitted he held 500 True shares, however since there were only a few hundred he did not sell them before assuming the post.
Deputy Prime Minister Suthep Thaugsuban said it would be too soon to decide whether to reshuffle the Cabinet following the EC decision. He said the government would rather wait till the Constitution Court announced its decision.
Election Commission secretary-general Suthipol Thaweechaikarn said of 29 MPs the EC had referred for a Constitution Court ruling on whether to disqualify them for holding shares in prohibited businesses, four were ministers: Deputy Transport Minister Kuakul Danchaiwijit, Deputy Interior Minister Boonjong Wongtrairat, Deputy Prime Minister Sanan Kachornprasart and Manit.
The EC panel found that of the four, only Manit held prohibited shares on the day he assumed his ministerial post on December 20 last year. The three others sold the shares before taking up their posts.
Manit held 500 shares in True Corp from December 24, 2002- October 7, 2009 and 4 million shares in TPI Polene from January 21, 2004. He traded some shares 17 times, the latest on December 23 last year.
Suthipol said the EC believed Manit had violated Articles 265 and 267, resulting in disqualification and removal from his ministerial post, in accordance with Article 182 (7).
He denied the EC intended to harass Manit but it needed to check on whether holding prohibited shares should result in him being disqualified as minister.
Manit said he respected the EC's decision but would not resign till the Constitution Court issued its ruling.
He admitted he held 500 True shares, however since there were only a few hundred he did not sell them before assuming the post.
Deputy Prime Minister Suthep Thaugsuban said it would be too soon to decide whether to reshuffle the Cabinet following the EC decision. He said the government would rather wait till the Constitution Court announced its decision.
Stocks slide ahead of Fed rate decision and jobless data
The US economy has been kick-started into growth but stock investors still face an uncertain outlook as Wall Street gears up for comments from the Federal Reserve and a key report on employment this week.
The Fed's monthly policy statement could signal fewer liquidity measures for markets, while nonfarm payroll data and the Institute for Supply Management surveys on the manufacturing and services sectors will give early indications of how the economy is faring in the fourth quarter.
Investors are nervous that monetary and fiscal stimulus measures may be ended too soon.
"If the government pulls out too early and they are not spending,[and] the consumer is not spending, you've got a big issue," said Anthony Conroy, head trader for BNY ConvergEx, an affiliate of the Bank of New York.
US stocks slumped on Friday in a stark reminder that investors remain highly sensitive to signs of economic weakness. The Dow slid 2.6% on the week to close on Friday at 9,712.73. The Nasdaq lost 5.1% to 2,045.11 and the broad-market Standard & Poor's index shed 4% at 1,036.19.
"You got a spurt that was stimulusdriven," said Fred Dickson, a market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon."The common belief right now is that the economy will move forward in the fourth quarter, but probably at a little slower pace than in the third quarter."
Financial markets are bracing for a possible change of wording in the Federal Open Market Committee statement, expected on Wednesday at the end of its two-day meeting, which could hint interest rates are headed higher late next year.
That, and any hint the Fed may start to pull back some of the liquidity it has been providing to markets through its debt purchases, could hurt stocks.
"If you got language along those lines that suggested that they could be raising [rates] maybe a little bit earlier than what folks were expecting, then I would expect the market to sell off on that news," said Thomas Wilson, a managing director in the institutional investments and private client group at Brinker Capital in Berwyn, Pennsylvania.
The number of jobs cut by employers is expected to have fallen in October.But a negative surprise like last month,when the unemployment rate hit a 26-year high, could undermine confidence in the recovery, driving stocks lower.
The nonfarm payrolls data, due on Friday, are expected to show that employers cut 175,000 jobs in October, according to economists polled by Reuters.In comparison, September's job cuts totalled 263,000, far exceeding the forecast. The unemployment rate is forecast to rise to 9.9% in October from 9.8% in September.
Third-quarter earnings season is winding down, but a few bellwethers could offer further insight into the economy.
Earnings and the outlook from Ford Motor Co, the only US car manufacturer to avoid bankruptcy, could be an important indication of how auto sales might fare without government help.
Ford's report today will be followed by automobile sales data the next day.Analysts and executives expect total US vehicle sales to rise to an annual rate of about 9.8 million units in October, up from 9.2 million the month before.
US auto sales boomed in August as the government's $3 billion in "Cash for Clunkers" incentives drove sharp gains.
Pulte Homes, the largest US homebuilder, is set to report earnings on Wednesday. Its comments will be watched closely for signs the housing recovery is finding firmer ground.
Pending home sales, due today, are expected to be unchanged in September after jumping 6.4% in August.
Talk of ending an $8,000 tax credit for first-time home buyers, which helped support the housing market, has ruffled investors. The tax credit is set to expire on Nov 30.
Congress is considering a proposal to extend the tax credit. But before a deal is cut, it remains a wild card for markets.
The Fed's monthly policy statement could signal fewer liquidity measures for markets, while nonfarm payroll data and the Institute for Supply Management surveys on the manufacturing and services sectors will give early indications of how the economy is faring in the fourth quarter.
Investors are nervous that monetary and fiscal stimulus measures may be ended too soon.
"If the government pulls out too early and they are not spending,[and] the consumer is not spending, you've got a big issue," said Anthony Conroy, head trader for BNY ConvergEx, an affiliate of the Bank of New York.
US stocks slumped on Friday in a stark reminder that investors remain highly sensitive to signs of economic weakness. The Dow slid 2.6% on the week to close on Friday at 9,712.73. The Nasdaq lost 5.1% to 2,045.11 and the broad-market Standard & Poor's index shed 4% at 1,036.19.
"You got a spurt that was stimulusdriven," said Fred Dickson, a market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon."The common belief right now is that the economy will move forward in the fourth quarter, but probably at a little slower pace than in the third quarter."
Financial markets are bracing for a possible change of wording in the Federal Open Market Committee statement, expected on Wednesday at the end of its two-day meeting, which could hint interest rates are headed higher late next year.
That, and any hint the Fed may start to pull back some of the liquidity it has been providing to markets through its debt purchases, could hurt stocks.
"If you got language along those lines that suggested that they could be raising [rates] maybe a little bit earlier than what folks were expecting, then I would expect the market to sell off on that news," said Thomas Wilson, a managing director in the institutional investments and private client group at Brinker Capital in Berwyn, Pennsylvania.
The number of jobs cut by employers is expected to have fallen in October.But a negative surprise like last month,when the unemployment rate hit a 26-year high, could undermine confidence in the recovery, driving stocks lower.
The nonfarm payrolls data, due on Friday, are expected to show that employers cut 175,000 jobs in October, according to economists polled by Reuters.In comparison, September's job cuts totalled 263,000, far exceeding the forecast. The unemployment rate is forecast to rise to 9.9% in October from 9.8% in September.
Third-quarter earnings season is winding down, but a few bellwethers could offer further insight into the economy.
Earnings and the outlook from Ford Motor Co, the only US car manufacturer to avoid bankruptcy, could be an important indication of how auto sales might fare without government help.
Ford's report today will be followed by automobile sales data the next day.Analysts and executives expect total US vehicle sales to rise to an annual rate of about 9.8 million units in October, up from 9.2 million the month before.
US auto sales boomed in August as the government's $3 billion in "Cash for Clunkers" incentives drove sharp gains.
Pulte Homes, the largest US homebuilder, is set to report earnings on Wednesday. Its comments will be watched closely for signs the housing recovery is finding firmer ground.
Pending home sales, due today, are expected to be unchanged in September after jumping 6.4% in August.
Talk of ending an $8,000 tax credit for first-time home buyers, which helped support the housing market, has ruffled investors. The tax credit is set to expire on Nov 30.
Congress is considering a proposal to extend the tax credit. But before a deal is cut, it remains a wild card for markets.
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