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Thai Stock Market May Test Support At 1,300 Points

The Thai stock market has moved lower in three straight sessions, sliding almost 45 points or 3.3 percent along the way. The Stock Exchange of Thailand now rests just above the 1,315-point plateau and it may extend its losses on Friday.

The global forecast for the Asian markets is broadly negative following a record drop in U.S. GDP, denting hopes for a quick economic recovery from the Covid-19 pandemic. The European markets were down and the U.S. bourses were mixed and the Asian markets are predicted to open in the red.

The SET finished sharply lower on Thursday following losses from the financial shares and energy producers.

For the day, the index tumbled 22.61 points or 1.69 percent to finish at 1,315.74 after trading between 1,313.10 and 1,347.45. Volume was 19.966 billion shares worth 67.115 billion baht. There were 1,238 decliners and 363 gainers, with 249 stocks finishing unchanged.

Among the actives, Advanced Info dropped 0.81 percent, while Thailand Airport plunged 4.13 percent, Asset World plummeted 4.50 percent, Bangkok Dusit Medical shed 0.46 percent, Bangkok Expressway tanked 3.35 percent, BTS Group retreated 0.94 percent, Charoen Pokphand Foods skidded 1.48 percent, Kasikornbank lost 0.60 percent, Krung Thai Bank sank 1.00 percent, PTT retreated 1.30 percent, PTT Exploration and Production tumbled 1.91 percent, PTT Global Chemical surrendered 2.66 percent, Siam Commercial Bank declined 2.54 percent, Siam Concrete lost 2.09 percent, TMB Bank was down 1.01 percent and Bangkok Bank was unchanged.

The lead from Wall Street is mostly soft as stocks opened lower on Thursday and mostly stayed that way, although the NASDAQ managed to climb into the green.

The Dow shed 225.92 points or 0.85 percent to finish at 26,313.65, while the NASDAQ added 44.87 points or 0.43 percent to end at 10,587.81 and the S&P 500 lost 12.22 points or 0.38 percent to close at 3,246.22.

The early sell-off on Wall Street came following a report from the Commerce Department report showing a record contraction in U.S. economic activity in the second quarter. Consumer spending led the decrease as the coronavirus-induced lockdowns forced consumers to stay at home.

A separate report from the Labor Department showed initial jobless claims increased for the second straight week in the week ended July 25th.

Crude oil futures settled lower on Thursday as worries about energy demand outlook resurfaced after data showed a sharp contraction in U.S. GDP and an uptick in unemployment claims and amid a continued surge in coronavirus cases across the world. West Texas Intermediate Crude oil futures for September ended lower by $1.35 or 3.3 percent at $39.92 a barrel.

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