The Thai stock market plummeted during morning trading on Thursday, in line with a sea of red seen in other Asia-Pacific bourses as rising Covid-19 cases and a plunge in oil prices continued to fan fears of an impending recession.
The Stock Exchange of Thailand (SET) index fell by 30.91 points, or -2.95%, to end the morning session at 1,017.24 points in turnover worth 24.2 billion baht.
Shares of Minor International Plc (MINT) saw the biggest sell-off, dipping by 10%, followed by PTTEP (-8.3%), AOT (-6.1%), PTT (-5.7%) and BBL (-5.6%).
An analyst from Philip Securities Thailand, speaking on condition of anonymity, said the increasing number of patients in Thailand and in countries in Europe was stoking fear of inadequate virus containment measures.
The SET index was expected to continue to be volatile, with movement projected of 990-1,070 points, Finansia Syrus Securities (FSS) said in its daily focus note.
“In particular, the number of confirmed cases and death toll around the world surged 10.4% day to day and 12.1% day to day, respectively,” said FSS.
“Besides, crude prices tumbled due to global recession fear, which will put tremendous pressure on energy stocks.”
Crude prices fell to an 18-year low, hammered by the dual shocks of collapsing demand and an impending supply flood. Prices later recovered as investors weighed efforts by policy makers across the globe to strengthen economies against the impact of the coronavirus pandemic, Bloomberg reported.
“The market is somewhat supported by stimulus packages, including both monetary and fiscal measures from central banks around the world,” said FSS.
The European Central Bank was the latest financial regulator to act, announcing provision for emergency asset purchases of €750 billion to cope with liquidity risk.
Goldman Sachs forecast that crude prices in the second quarter will fall below US$20 per barrel. However, Iraq has requested Opec member countries to set up a meeting to consider measures to reverse the slide in oil prices.
