Thai Stock Market Potentially Rises Further on Thursday
The Thai stock market experienced a downturn on Wednesday, ending a three-day winning streak, as crude oil prices continued to plummet for the third consecutive day. The SET Index closed at 1,157.63 points.
The energy sector was particularly affected, with PTT Oil & Retail, PTT, and PTT Global Chemical recording gains, while other energy stocks such as Energy Absolute and Thai Oil witnessed declines.
The broader market was also impacted, with losses reported from the food, consumer, property, resource, and technology sectors. Notable declines were seen in stocks like BTS Group, Charoen Pokphand Foods, Bangkok Dusit Medical, B. Grimm, True Corporation, and SCG Packaging.
In the technology sector, Advanced Info experienced a dip, while Thailand Airport bucked the trend and soared. TTB Bank, Krung Thai Bank, PTT Exploration and Production, and Bangkok Expressway remained unchanged.
Meanwhile, political uncertainty continued to cast a shadow over the market. President Donald Trump discussed the possibility of firing Federal Reserve Chair Jerome Powell during a meeting with House Republicans, though recent reports suggest that he is "not planning" on taking such action.
Despite the challenges, analysts remain optimistic about a short-term recovery for the Thai stock market. However, they caution that lingering political risks could impact various sectors, including technology, in the long run.
The SET has been working on measures to attract investors and improve market conditions, such as reinstating normal trading rules and enhancing liquidity and corporate governance. These efforts could help stabilize and grow the technology sector over time.
Trading volume for the day reached 11.282 billion shares worth 42.928 billion baht. Gasoline inventories in the U.S. remained slightly above the five-year average for this time of year, and producer prices in the U.S. unexpectedly came in flat in June.
The Fed is still expected to leave interest rates unchanged until September at the earliest, which could provide some stability for the Thai stock market in the near future. Asset World, Banpu, and Bangkok Bank also experienced fluctuations in their stock prices.
In summary, the Thai stock market faced challenges on Wednesday as crude oil prices continued to drop and political uncertainty persisted. However, the SET's efforts to improve market conditions may help stabilize and grow the technology sector over time.
The downturn in the Thai stock market extended to various sectors, including finance, business, and technology, with noticeable declines seen in stocks like Advanced Info and TTB Bank, while Thailand Airport bucked the trend and soared.
Analysts remain optimistic about a short-term recovery for the technology sector, considering the SET's efforts to enhance liquidity, corporate governance, and attract investors, which could potentially help grow the sector in the long run.
