SET leads downward spiral on dour Q3 earnings

SET leads downward spiral on dour Q3 earnings

A man looks at share prices on an electronic board at Asia Plus Securities headquarters on Sathon Road.The SET index on Monday plunged the most among Asia Pacific bourses by 1.32%. (Bangkok Post file photo)
A man looks at share prices on an electronic board at Asia Plus Securities headquarters on Sathon Road.The SET index on Monday plunged the most among Asia Pacific bourses by 1.32%. (Bangkok Post file photo)

The Stock Exchange of Thailand (SET) index had the steepest plunge among Asia-Pacific bourses on Monday as confidence was derailed by subdued third-quarter earnings and a dejected economic growth outlook.

Thailand's benchmark equity index closed at 1,569.53 points, down 21.06 points or 1.32%, in turnover worth 54.76 billion baht.

Foreign investors were net sellers of 2.35 billion baht and brokerage firms offloaded 1.1 billion worth of shares.

The equity sell-off in the SET index was not aligned with gains seen in many Asian bourses, with Indonesia's Jakarta Composite index surging by 1.97% and Japan's Nikkei 225 rising by 1%.

"The only reason the SET moved in contrast with most regional bourses is disappointing operating results, which are grounds for a downward revision of earnings per share and an underweight outlook," said Prakit Sirivattanaket, senior vice-president at Merchant Partners Asset Management.

Large-cap stocks led yesterday's losses as CPF shares plummeted by 3.64%, followed by INTUCH (-3.4%), ADVANC (-2.36%), KBANK (-2.26%), PTT (-1.73%) and SCC (-1.57%)

Mr Prakit said on Friday, foreign investors opened a short-selling position on both single-stock futures and SET50 futures by around 50,000 contracts, resulting in a rise of outstanding SET50 futures to 380,000 contracts from 350,000 previously.

Foreign investors' short-selling position was mostly for short-term contracts, not the series that will mature in next year's first quarter, he said.

"The stock market fell by more than 1%, but those investing in the futures market can make profit by 15-20%," said Mr Prakit.

"We may see investors close their positions within 1-2 days, preventing the stock market from tumbling further."

Deputy Prime Minister Somkid Jatusripitak recently said Thailand's full-year GDP growth is expected to be 2.4%, while the Commerce Ministry projects this year's headline inflation will be below 0.85%, said Phillip Securities Thailand in its note.

"The outlook remains downward for the short, medium and long term and there is no sign of recovery in sight until the SET index can rebound above 1,620 points," said Phillip Securities Thailand.


Do you like the content of this article?
COMMENT

Suppression in Myanmar drives 'ice' into Thailand

Mountains of crystal methamphetamine or "ice" have been seized this year as a result of heavy suppression in Myanmar, causing an influx of the drug into Thailand, Office of Narcotic Control Board (ONCB) secretary-general Niyom Termsrisuk said on Monday.

19:42

Hotel floors shut after Egyptian tests positive for virus

Two floors of a hotel in Rayong where an Egyptian delegation stayed have been ordered closed for sanitising after one of them was found to have been infected with the coronavirus.

18:33

Family of infected girl from Sudan investigated

The family of a nine-year-old girl found infected with Covid-19 are being investigated after they were not in state quarantine and required only to self-isolate.

18:13