Thailand’s stock market saw another turbulence on Monday as the number of Covid-19-related global infections and deaths surged and crude prices stumbled, with the local “soft lockdown” adding another woe for the already-fragile confidence.
The Stock Exchange of Thailand (SET) index fell by 80.29 points or -7.12 % to end the morning trading session at 1,046.95 points in turnover worth 34.8 billion baht.
The share price of Kasikornbank (KBANK) tumbled the most by 14%, followed by GPSC (-12.2%), BAM (-12%), PTTEP (-9.5%) and AOT (-8.8%).
The Bank of Thailand’s recent monetary easing, sending the benchmark interest rate to a new record-low of 0.75%, is estimated to affect the banking sector's earnings by around 6.4%, with Siam Commercial Bank and Bangkok Bank being the most affected, according to Asia Wealth Securities.
Share prices of SET-listed companies operating in the retail segment also saw a significant dip on Monday as the Bangkok Metropolitan Administration has ordered a soft lockdown in the capital and adjacent provinces.
Starting since March 22, shopping malls and markets in Bangkok and adjacent provinces, except those selling food and essential consumer goods, have been ordered to close for three weeks in an effort to slow the spread of the Covid-19 outbreak.
The share price of Central Retail Corporation Plc (CRC) fell by 14.6% to 21.1 baht, a far cry from its IPO price at 42 baht per share. Share prices of Home Product Center Plc (HMPRO) and Minor International Plc (MINT) also plummeted by 15% and 13.3%, respectively.
“Since the company (HMPRO) announced a temporary closure of 41 branches for 22 days, affecting 2020 revenue of approximately 4% of total revenue. However, the company still provides services to sell products online, which is expected to help compensate the reduced sales revenue from temporary branch closures,” said Asia Wealth Securities.
Asia Plus Securities executive vice-president Therdsak Thaveeteeratham said concerns surrounding the novel coronavirus outbreak still remain and local infection cases have been rising day by day.
Thailand has 122 new coronavirus cases, raising the total to 721, with one fatality so far since the outbreak started in January.
Market participants seem to be indifferent toward another 25 basis-points rate cut implemented at Friday’s special meeting by the Bank of Thailand’s Monetary Policy Committee because such a move has not shored up confidence of Thailand’s economic recovery, said Mr Therdsak.
The Finance Ministry has yet to roll out direct measures to support the stock market despite how financial authorities on Sunday announced measures to rev up confidence in the bond market to provide liquidity for mutual funds through commercial banks and setting up a corporate bond stabilisation fund to invest in high-quality, newly-issued debentures.
“The stock market is very sensitive for now and the direction depends on global market movement. Hopefully, the government will bring effective new measures for the cabinet’s approval tomorrow,” said Mr Therdsak.