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BANGKOK : Thailand's prime minister said Friday that an investigation was underway into whether the stock exchange was manipulated, after anxiety over the king's health sent markets plunging.
Abhisit Vejjajiva sought to reassure investors in Thai stocks after the bourse saw two days of heavy falls on rumours that the hospitalised King Bhumibol Adulyadej's condition had worsened.
"The Securities and Exchange Commission will investigate whether anybody intended to cause trouble in the trading, which is illegal," Abhisit told reporters.
"There was an investigation into people at a company but they all denied (manipulation)," he said, without giving the company's name.
"Rumours happen all the time. We cannot stop (investors) from talking or thinking but we should rely on reason and have confidence in our system," he added.
Stocks were up 2.05 percent at the end of Friday's morning session, after speculation over the king's condition in previous sessions triggered a sell-off.
The rumours began Wednesday, rattling investors' confidence because the king -- revered as a demi-god by many Thai people -- has a crucial role in maintaining the stability of a politically divided nation, analysts said.
Thursday saw the market plunge by 8.22 percent at one point, despite attempts by the stock exchange president to reassure investors and a palace statement that the king's condition was "good". Stocks closed down 5.3 percent.
The 81-year-old King Bhumibol, the world's longest-reigning monarch, has been in hospital for almost a month recovering from a lung infection and fever.
In its brief daily update on the king's health late on Thursday, the palace as usual gave few details but said his appetite was improving.
Finance minister Korn Chatikavanij also insisted Friday that the Thai market was a "good investment choice".
On Friday, the English-language Nation newspaper condemned the "false hearsay" about the monarch's health, which it said was "deplorable".
"The rumours were designed to create panic and speculation on Thailand's politics," the editorial stated.
"King Bhumibol is a constitutional monarch with no formal political role, but he has repeatedly brought calm in times of turbulence and is widely revered as the country's moral authority and a unifying figure," it added.
The royal family is protected by a harsh lese majeste law, which states that anyone who insults the king or other royals can be jailed for up to 15 years. The king's health is a particularly sensitive topic in light of the political turmoil that has rocked Thailand for three years, since former prime minister Thaksin Shinawatra was toppled in a 2006 coup.
- AFP /ls
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