Plus   Neg

Thai Stock Market May Open Under Pressure

The Thai stock market on Wednesday wrote a finish to the two-day winning streak in which it had gathered more than 5 points or 0.3 percent. The Stock Exchange of Thailand now rests just beneath the 1,720-point plateau and the losses may accelerate on Thursday.

The global forecast for the Asian markets is negative thanks to renewed concern over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The SET finished modestly lower on Wednesday following losses from the energy producers and a mixed picture form the financial shares.

For the day, the index slid 8.95 points or 0.52 percent to finish at 1,718.34 after trading between 1,716.38 and 1,728.54. Volume was 10.213 billion shares worth 43.221 billion baht. There were 877 decliners and 395 gainers, with 419 stocks finishing unchanged.

Among the actives, Advanced Info shed 0.79 percent, while Thailand Airport skidded 1.10 percent, Bangkok Expressway added 0.64 percent, Charoen Pokphand Foods dropped 0.96 percent, Kasikornbank collected 0.25 percent, Krung Thai Bank climbed 1.12 percent, PYY lost 0.97 percent, PTT Exploration and Production was down 1.10 percent, PTT Global Chemical tumbled 1.14 percent, Siam Commercial Bank plunged 1.45 percent, Siam Concrete dipped 0.45 percent and Bangkok Medical, Banpu and Bangkok Bank were unchanged.

The lead from Wall Street is soft as stocks saw modest strength for much of Wednesday but came under pressure following the Federal Reserve's monetary policy announcement.

The Dow slid 119.53 points or 0.47 percent to 25,201.20, while the NASDAQ eased 8.09 points or 0.11 percent to 7,695.70 and the S&P 500 fell 11.22 points or 0.40 percent to 2,775.63.

The pullback came after the Fed announced its decision to raise interest rates by 25 basis points to a range of 1.75 to 2 percent. The rate hike was widely expected, but the Fed surprised investors by forecasting two additional rate hikes this year after previously predicting only one rate.

The central bank said data received since its May meeting indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate.

In economic news, the Labor Department noted a bigger than expected increase in producer prices in May - while core producer prices also ticked higher.

Crude oil futures rose Wednesday after energy inventories fell more than forecast. July WTI oil climbed 28 cents or 0.4 percent to settle at $66.64/bbl.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT