Thai Stock Market Faces Potential Test of Support at 1,100 Level
Stock markets in Thailand have been on a downward spiral, plummeting over 25 points or 2.2% in four consecutive sessions. The Stock Exchange of Thailand (SET) is hovering just below the 1,115-point milestone, with chances of a further drop predicted for Wednesday. This downturn comes as global tensions in the Middle East escalate, casting a negative outlook on the Asian markets.
European and US markets have already closed in the red, and our Asian bourses are expected to follow suit. The SET slipped 0.91 points or 0.08% yesterday, finishing at 1,113.58 amid losses from food, industrial, resource, and technology sectors. However, gains in finance, property, and service stocks managed to mitigate some of the negative impact.
Trade volume amounted to 6.517 billion shares worth 27.531 billion baht. There were 243 gainers, 197 decliners, and 220 stocks ending the day unchanged.
Among the actively traded stocks, Thailand Airport saw a surge of 4.59%, Banpu rallied 2.30%, Bangkok Bank improved 0.72%, Bangkok Dusit Medical advanced 0.95%, B. Grimm declined 1.55%, BTS Group lost 0.48%, Charoen Pokphand Foods dropped 0.99%, Gulf skidded 1.14%, Kasikornbank collected 0.66%, Krung Thai Bank added 0.46%, Krung Thai Card increased 0.68%, PTT tumbled 1.63%, PTT Exploration and Production slumped 1.79%, PTT Global Chemical retreated 1.47%, SCG Packaging tanked 2.40%, Siam Commercial Bank rose 0.43%, Siam Concrete shed 0.59%, Thai Oil sank 0.87%, True Corporation stumbled 2.50%, TTB Bank, Asset World, Advanced Info, Energy Absolute, PTT Oil & Retail, CP All Public, and Bangkok Expressway ended the day unchanged.
Wall Street is showing signs of weakness as major averages opened slightly lower on Tuesday but experienced a steep decline as the day progressed. The Dow lost 299.29 points or 0.7%, ending the day at 42,215.80, while the NASDAQ plummeted 180.12 points or 0.91%, closing at 19,521.09. The S&P 500 sank 50.39 points or 0.84%, wrapping up at 5,982.72.
Reports hinting at an end to hostilities had caused a rally on Monday, yet news of President Trump leaving the G7 summit early to focus on the conflict has brought concerns over potential escalation. The weakness on Wall Street was also following the release of a Commerce Department report revealing that US retail sales fell more than expected in May.
Meanwhile, geopolitical tensions in the Middle East have sent oil prices soaring, with West Texas Intermediate crude surging by $3.07 to $74.84 per barrel. Locally, Thailand could soon release the May figures for imports, exports, and trade balance. In April, imports increased by 16.1% year-on-year, exports rose by 10.2%, generating a trade deficit of $3.30 billion.
Middle East's escalating geopolitical crisis, characterized by direct military engagements between Israel and Iran, military build-ups by the US, and cyber warfare, is causing tension in Asian markets and upward pressure on energy prices. Asian economies, including Thailand, are vulnerable to energy price fluctuations and investor risk sentiment influenced by geopolitical uncertainties. On the flip side, this instability presents potential growth opportunities in defense and technology sectors linked to security and cyber defense.
The financial industry in Thailand is experiencing a downturn as the Stock Exchange of Thailand (SET) plummets, due in part to losses in the food, industrial, resource, and technology sectors. However, gains in finance and service stocks are helping to mitigate some of the negative impact.
This instability in the Asian markets is being exacerbated by the escalating geopolitical crisis in the Middle East, which is causing tension and upward pressure on energy prices, making Asian economies, such as Thailand, vulnerable to energy price fluctuations and investor risk sentiment influenced by geopolitical uncertainties. On the flip side, this instability presents potential growth opportunities in defense and technology sectors linked to security and cyber defense.
