Renewed Consolidation Called For Thai Stock Market

The Thai stock market on Friday snapped the two-day slide in which it had stumbled more than 30 points or 2.2 percent. The Stock Exchange of Thailand now rests just above the 1,330-point plateau although it figures to head south again on Monday.

The global forecast for the Asian markets is soft on spiking Covid-19 cases and poor results from bank stress tests. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.

The SET finished slightly higher on Friday following gains from the food and cement stocks, while the financials were down and the energy producers were mixed.

For the day, the index rose 4.46 points or 0.34 percent to finish at 1,330.34 after trading between 1,328.49 and 1,344.04. Volume was 12.821 billion shares worth 47.193 billion baht. There were 723 decliners and 539 gainers, with 412 stocks finishing unchanged.

Among the actives, Advanced Info shed 0.80 percent, while Asset World added 0.53 percent, Banpu dropped 0.82 percent, Bangkok Bank sank 0.92 percent, Bangkok Expressway lost 0.52 percent, Charoen Pokphand Foods soared 3.25 percent, Kasikornbank skidded 1.36 percent, Krung Thai Bank retreated 0.97 percent, PTT fell 0.67 percent, PTT Exploration and Production jumped 1.37 percent, PTT Global Chemical declined 0.55 percent, Siam Commercial Bank tumbled 1.71 percent, Siam Concrete spiked 1.94 percent, TMB Bank was down 0.94 percent and BTS Group, Thailand Airport and Bangkok Dusit Medical were unchanged.

The lead from Wall Street is broadly negative as stocks opened sharply lower on Friday and stayed that way throughout the session.

The Dow plummeted 730.05 points or 2.84 percent to finish at 25,015.55, while the NASDAQ tumbled 259.78 points or 2.59 percent to end at 9,757.22 and the S&P 500 sank 74.71 points or 2.42 percent to close at 3,009.05.

The weakness on Wall Street was due largely to a sharp surge in new Covid-19 infections in several states, raising fears of re-imposing restrictions on businesses. The U.S. Centers of Disease Control and Prevention has warned that the number of infected people in the U.S. is most likely 10 times higher than what has been officially reported.

Financials turned lower after the Fed released the results of stress tests on banks - which said the nation's biggest banks are healthy but could suffer up to $700 billion in losses on soured loans if the economy languishes. It also ordered certain banks to cap dividends to conserve funds.

Crude oil futures settled lower on Friday, weighed down by concerns over energy demand outlook in the wake of sharp spikes in new coronavirus infections in several states in the U.S. West Texas Intermediate Crude oil futures for August ended down $0.23 or 0.6 percent at $38.49 a barrel.

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