Rebound Anticipated For Thai Stock Market
(RTTNews) - Ahead of the long holiday weekend for the king's birthday, the Thai stock market has alternated between positive and negative finishes through the last eight trading days since the end of the two-day slide in which it had fallen more than 20 points or 1.7 percent. The Stock Exchange of Thailand now rests just above the 1,340-point plateau and it may move higher on Wednesday as it catches up on missed support.
The global forecast for the Asian markets is soft on coronavirus concerns, stimulus questions and falling oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.
The SET finished sharply lower on Friday following losses from the financial shares and the energy producers.
For the day, the index dropped 18.73 points or 1.38 percent to finish at 1,340.92 after trading between 1,337.21 and 1,350.93. Volume was 15.230 billion shares worth 46.529 billion baht. There were 1,097 decliners and 398 gainers, with 293 stocks finishing unchanged.
Among the actives, Advanced Info dropped 1.07 percent, while Thailand Airport tumbled 1.78 percent, Asset World shed 0.50 percent, Bangkok Bank sank 0.95 percent, Bangkok Dusit Medical skidded 1.36 percent, Bangkok Expressway retreated 1.65 percent, BTS Group declined 1.87 percent, Charoen Pokphand Foods lost 1.49 percent, Kasikornbank fell 1.15 percent, Krung Thai Bank slid 1.94 percent, PTT plummeted 3.14 percent, PTT Exploration and Production tanked 2.61 percent, PTT Global Chemical plunged 3.00 percent, Siam Commercial Bank gave away 2.08 percent, Siam Concrete was down 1.55 percent and TMB Bank was unchanged.
The lead from Wall Street is negative as stocks moved mostly lower on Tuesday, largely offsetting the upward move seen in the previous session.
The Dow dropped 205.49 points or 0.77 percent to finish at 26,379.28, while the NASDAQ sank 134.18 points or 1.27 percent to end at 10,402.09 and the S&P 500 fell 20.97 points or 0.65 percent to finish at 3,218.44.
The pullback by stocks came as traders kept an eye on developments in Washington after Republicans unveiled their version of a new coronavirus relief bill. The GOP bill includes popular provisions like another $1,200 stimulus payment to American as well as more funding for the Paycheck Protection Program.
However, the legislation also slashes unemployment benefits and provides liability protections for businesses and doctors, which could lead to an impasse in negotiations with Democrats.
Negative sentiment was also generated by a report from the Conference Board showing consumer confidence fell more than expected in July.
Traders were also looking ahead to today's Federal Reserve's monetary policy announcement. While the Fed is widely expected to leave interest rates unchanged, traders will look to the accompanying statement for clues about future plans to provide additional economic stimulus.
Crude oil futures settled lower on Tuesday amid concerns about the outlook for near term energy demand due to the surge in coronavirus cases and fears of fresh lockdown measures. West Texas Intermediate Crude oil futures for September slid $0.56 or 1.4 percent at $41.04 a barrel.
Closer to home, Thailand will release June numbers for industrial production later today; in May, output plummeted 23.9 percent on year.
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