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Thai Stock Market May Take Further Damage On Friday

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(RTTNews) – The Thai stock market on Thursday ended the five-day winning streak in which it had advanced almost 60 points or 3.7 percent. The Stock Exchange of Thailand now sits just above the 1,535-point plateau and it may extend its losses on Friday.

The global forecast for the Asian markets is mixed to lower, with stimulus optimism tempered by concern over the outlook for interest rates. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The SET finished modestly lower on Thursday as the financial shares and energy producers finished mostly in the red.

For the day, the index sank 11.33 points or 0.73 percent to finish at 1,535.98 after trading between 1,533.52 and 1,552.78. Volume was 27.057 billion shares worth 97.201 billion baht. There were 950 decliners and 531 gainers, with 402 stocks finishing unchanged.

Among the actives, Advanced Info shed 0.55 percent, while Thailand Airport dropped 0.81 percent, Asset World added 0.41 percent, Bangkok Asset Management and Bangkok Dusit Medical both gained 0.47 percent, Bangkok Bank sank 0.79 percent, Bangkok Expressway lost 0.61 percent, Gulf tanked 3.38 percent, Kasikornbank skidded 1.65 percent, PTT retreated 1.12 percent, PTT Exploration and Production perked 0.44 percent, PTT Global Chemical tumbled 1.56 percent, Siam Commercial Bank collected 0.27 percent, Siam Concrete climbed 1.04 percent, TMB Bank fell 0.84 percent and BTS Group, Charoen Pokphand Foods and Krung Thai Bank were unchanged.

The lead from Wall Street is soft as stocks opened higher on Thursday but faded as the day progressed and ended slightly in the red.

The Dow shed 68.95 points or 0.22 percent to finish at 30,991.52, while the NASDAQ dipped 16.31 points or 0.12 percent to end at 13,112.64 and the S&P 500 fell 14.30 points or 0.38 percent to close at 3,795.54.

Optimism about additional fiscal stimulus helped generate early buying interest as President-elect Joe Biden is expected to unveil a major coronavirus relief package with a price tag in the ballpark of $2 trillion.

Trades were also reacting to a Labor Department report showing initial jobless claims jumped to their highest level in over four months last week. Traders have viewed disappointing data as a positive for the markets as it could put further pressure on lawmakers to approve more stimulus.

The pullback by stocks seemed to coincide with an advance by treasury yields, which rebounded following remarks by Federal Reserve Chair Jerome Powell – who suggested that the economy could return to pre-pandemic levels sooner than feared due to unprecedented fiscal stimulus and the Fed’s aggressive intervention.

But he reiterated that the Fed does not intend to raise interest rate anytime soon and downplayed talk of the central bank tapering its bond purchases in the near future.

Crude oil prices bounced higher Thursday on hopes that big stimulus from the Biden administration and the Covid-19 vaccination drive will lift energy demand. West Texas Intermediate Crude oil futures for February ended up by $0.66 or 1.3 percent at $53.57 a barrel.