Additional Selling Pressure Expected For Thai Stock Market

The Thai stock market on Monday snapped the two-day winning streak in which it had added almost 5 points of 0.3 percent. The Stock Exchange of Thailand now rests just above the 1,555-point plateau and it may extend its losses on Tuesday.

The global forecast for the Asian markets is broadly negative on renewed Covid-19 concerns and the resulting plunge in crude oil prices. The European and U.S. markets were sharply lower and the Asian bourses are tipped to follow them lower.

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

For the day, the index lost 18.36 points or 1.17 percent to finish at 1,556.01 after trading between 1,551.79 and 1,563.88. Volume was 21.898 billion shares worth 66.729 billion baht. There were 1,365 decliners and 423 gainers, with 290 stocks finishing unchanged.

Among the actives, Advanced Info added 0.59 percent, while Thailand Airport and Bangkok Expressway both skidded 1.24 percent, Bangkok Bank dropped 0.94 percent, Bangkok Dusit Medical retreated 1.29 percent, BTS Group shed 0.55 percent, Gulf declined 1.49 percent, Kasikornbank tumbled 1.75 percent, Krung Thai Bank sank 0.97 percent, Krung Thai Card plummeted 6.09 percent, PTT plunged 2.67 percent, PTT Exploration and Production tanked 2.23 percent, PTT Global Chemical surrendered 1.29 percent, SCG Packaging climbed 1.18 percent, Siam Commercial Bank lost 1.32 percent, TTB Bank was down 0.98 percent and Charoen Pokphand Foods, PTT Oil & Retail and Siam Concrete were unchanged.

The lead from Wall Street is rough as the major averages opened sharply lower on Monday and continued to deteriorate as the session progressed.

The Dow plummeted 725.81 points or 2.09 percent to finish at 33,962.04, while the NASDAQ dropped 152.25 points or 1.06 percent to end at 14.274.98 and the S&P 500 sank 68.67 points or 1.59 percent to close at 4,258.49.

The sell-off on Wall Street reflected concerns about a resurgence of the coronavirus as the delta variant contributes to a spike in infections in the U.S.

According to data from the CDC, the seven-day average of Covid-19 cases in the U.S. has jumped to nearly 30,000 after falling as low as 11,455 a month ago. That weighed heavily on travel stocks like cruise operators and airlines.

In U.S. economic news, the National Association of Home Builders reported an unexpected dip in U.S. homebuilder confidence in July.

Crude oil prices fell sharply on Monday, weighed down by concerns about oversupply in the market after OPEC+ agreed to boost output. West Texas Intermediate Crude oil futures for September sank $5.21 or 7.3 percent at $66.35 a barrel.

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