The Thai stock market has closed lower now in back-to-back sessions, plummeting almost 40 points or 3.5 percent along the way. The Stock Exchange of Thailand settled just above the 1,135-point plateau, and now analysts are forecasting a positive bounce at the opening of trade on Tuesday.
The global forecast for the Asian markets is cautiously optimistic after many of the regional bourses were brutally oversold last week - although the bargain hunting may be limited by persistent concerns from Europe. Spain may see another economic contraction in the second quarter of this year, Economy Minister Luis De Guindos reportedly said on Monday. The minister also denied that Spain needs any kind of external aid for its banking sector. The European and U.S. markets were higher on Monday and the Asian markets are expected to open in similar fashion.
The SET finished sharply lower on Monday following heavy losses from the financial shares and the energy producers.
For the day, the index plummeted 19.28 points or 1.67 percent to finish at the daily low of 1,135.16 after peaking at 1,153.73. Volume was 3.973 billion shares worth 25.474 billion baht. There were 362 decliners and 190 gainers, with 109 stocks finishing unchanged.
Among the decliners, energy giant PTT was down 1.83 percent, while PTT Global Chemicals shed 0.41 percent, coal miner Banpu dropped 2.81 percent, Siam Concrete plunged 2.68 percent, Bangkok Bank plummeted 3.88 percent, Siam Commercial bank fell 2.11 percent and Kasikornbank retreated 2.31 percent.
The lead from Wall Street is upbeat as stocks saw significant strength on Monday, regaining some ground after falling to a four-month low on Friday. The markets benefited from bargain hunting but remain sharply lower for the month of May. The Dow ended a six-session losing streak, although it still marked just its second gain in fourteen sessions.
Trading activity was subdued, as lingering concerns about Europe and a lack of major U.S. economic data kept some traders on the sidelines. While reports on home sales, durable goods orders, and consumer sentiment will be in focus later this week along with earnings news from Hewlett-Packard (HPQ), Dell (DELL), and Best Buy (BBY), trading activity may remain light.
Among individual stocks, American Eagle Outfitters (AEO) posted a strong gain after the apparel retailer announced plans to exit its children's business 77kids. Shares of Yahoo (YHOO) also ended the day higher after the online media giant announced that it is selling up to half of its stake in Alibaba back to the Chinese e-commerce company for about $7.1 billion.
Meanwhile, Lowe's (LOW) posted a steep loss after the home improvement retailer reported better than expected first quarter results but lowered its full year earnings guidance. Shares of Facebook (FB) also came under pressure, with the social media giant tumbling by 11 percent following its glitch-plagued debut on Friday.
The major averages saw further upside going into the close, ending the session just off their highs. The Dow rose 135.10 points or 1.1 percent to finish at 12,504.48, while the NASDAQ jumped 68.42 points or 2.5 percent to end at 2,847.21 and the S&P 500 climbed 20.77 points or 1.6 percent to 1,315.99.
In economic news, Thailand's economy expanded a seasonally adjusted 11 percent in the first quarter of 2012 compared to the previous three months, the National Economic and Social Development Board said on Monday.
Year-on-year, the gross domestic product expanded 0.3 percent. This compares to a forecast of 0.9 percent contraction. In the fourth quarter, GDP fell 8.9 percent.
The planning agency expects the economy to expand 5.5 to 6.5 percent in 2012.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.