Thai Stocks Close Lower as Investors Fear Fed Interest Rate Hike
Bangkok, September 8, 2023 – Thai stocks closed 3.19 points lower today, as investor concerns over the possibility of the Federal Reserve maintaining high interest rates for an extended period weighed on market sentiment. There is also speculation of a potential interest rate hike in November, which has caused foreign investors to hesitate and delay their return to the Thai stock market.
Market analysts suggest closely evaluating the investment framework next week, particularly at the important support level of 1,540 points. If the market manages to hold above this level, there could be potential for a rebound. Additionally, investors should keep a close eye on the upcoming US inflation numbers, as they will indicate the direction of the Fed’s monetary policy, which in turn will impact investments in the Thai stock market.
The Thai stock market closed at 1,547.17 points today, down by 0.21% or 3.19 points. The total trading value stood at 34,714.41 million baht. Throughout the day, the index fluctuated within a narrow range, oscillating between positive and negative territory. The highest point reached was 1,554.50, while the lowest point was 1,546.91.
Among the securities traded today, there were 218 gainers, 207 unchanged, and 215 decliners.
Furthermore, the breakdown of trading volume by investor group revealed that foreign investors were net sellers, amounting to -2,182.58 million baht, while institutional investors were also net sellers, with -175.14 million baht. On the other hand, domestic investors acted as net buyers, with a total purchase of +1,418.46 million baht. Company securities also experienced a net purchase of +939.27 million baht.
The top five securities with the highest trading value were as follows:
1. SCB, with a trading value of 1,390.06 million baht, closed at 116.00 baht with no price change.
2. PSP, with a trading value of 1,361.18 million baht, closed at 10.60 baht, down 2.10 baht.
3. AOT, with a trading value of 1,241.35 million baht, closed at 71.00 baht, down 0.75 baht.
4. PTTEP, with a trading value of 1,149.60 million baht, closed at 167.50 baht, up 0.50 baht.
5. BANPU, with a trading value of 982.90 million baht, closed at 8.25 baht, down 0.20 baht.
As for the SET100 Index, the top five gainers were:
1. MTC, closing at 40.50 baht, up 1.25 baht or 3.18%.
2. KTC, closing at 47.50 baht, up 1.00 baht or 2.15%.
3. CBG, closing at 82.75 baht, up 1.00 baht or 1.22%.
4. SAWAD, closing at 47.75 baht, up 0.75 baht or 1.60%.
5. COM7, closing at 32.75 baht, up 0.50 baht or 1.55%.
Conversely, the five biggest decliners on the SET100 Index were:
1. DELTA, closing at 105.50 baht, down 1.50 baht or 1.40%.
2. CENTEL, closing at 46.50 baht, down 1.00 baht or 2.11%.
3. KBANK, closing at 129.50 baht, down 1.00 baht or 0.77%.
4. BH, closing at 255.00 baht, down 1.00 baht or 0.39%.
5. MINT, closing at 32.75 baht, down 0.50 baht or 1.50%.
The SET100 index concluded at 2,107.69 points, down 0.31% or 6.55 points, while the SET50 index closed at 946.00 points, down 0.31% or 2.94 points, and the market index finished at 480.70 points, down 0.01% or 0.04 points.
Mr. Narongdet Chandrapaisarn, Director of Securities Analysis at AIRA Securities, commented on today’s market performance. He stated that the Thai stock market experienced limited fluctuations due to the absence of new factors. However, existing concerns about the US Federal Reserve’s policies regarding high interest rates continue to weigh on investor sentiment. Furthermore, the recent decline in energy prices has also impacted energy stocks and influenced market direction.
Additionally, the projected earnings per share (EPS) of listed companies at 89 baht per share has deterred foreign capital from flowing into the Thai stock market, as valuations are deemed unattractive.
Looking ahead, Mr. Narongdet expects the Thai stock market to remain subdued next week, with the focus shifting towards the upcoming US inflation numbers, which will be released on September 13. These figures will provide insight into the Fed’s monetary policy decisions. Although the government policy announcement is scheduled for September 11-12, the market has already assimilated this information. However, there are concerns that the government’s policies may not be fully achieved, adding to the already negative sentiment.
The market outlook for next week suggests paying close attention to the support level at 1,540 points. Should the market hold above this level, a potential rebound may be in sight. Meanwhile, the resistance level is projected to be at 1,570 points.
As investors brace for volatile market conditions, maintaining a vigilant approach and staying informed of key influencers such as the Fed’s monetary policy and US inflation data will be crucial in navigating the Thai stock market landscape.
Thai stocks closed -3.19 points. Brokers highlighted the fact that investors were worried that the Fed would maintain high interest rates for a longer period of time. Or there may be an interest rate hike once in November, causing foreign investors to balk and delay returning to investing in the Thai stock market. Evaluate the investment framework next week at the important support level of 1,540 points. If it doesn’t break, there is a chance to rebound. Regarding the resistance level at 1,570 points, it is recommended to keep an eye on the US inflation numbers. That will determine the direction of the Fed’s monetary policy, which will affect investments in the Thai stock market.
The Thailand stock market closed for trading on September 8, 2023, down -3.19 points or -0.21%, closing at 1,547.17 points, trading value 34,714.41 million baht, while the general stock traded today The index moves within a narrow range, alternating between positive and negative territory. During the day, the index rose to a maximum of 1,554.50 points, on the other hand, it fell to a low of 1,546.91 points.
Although the securities that change today increased in the amount of 218 securities, remained unchanged in the amount of 207 securities, and decreased in the amount of 215 securities.
In terms of trading volume distributed by investor group, foreign investors were found to be net sellers of more than -2,182.58 million baht and institutional investors were net sellers of more than -175.14 million baht. On the other hand, domestic investors were found to be net buyers of more than +1,418.46 million baht, and the company’s securities account has a net purchase of more than +939.27 million baht.
The securities with the highest trading value of the 5 securities
1.SCB trading value 1,390.06 million baht, closed at 116.00 baht, price unchanged.
2.PSP trading value 1,361.18 million baht, closed at 10.60 baht, down 2.10 baht.
3.AOT trading value 1,241.35 million baht, closed at 71.00 baht, down 0.75 baht.
4.PTTEP trading value 1,149.60 million baht, closed at 167.50 baht, an increase of 0.50 baht.
5.BANPU trading value 982.90 million baht, closed at 8.25 baht, down 0.20 baht.
In terms of the SET100 Index, the five positions with the most positive price increases are:
1.MTC closed at 40.50 baht, up 1.25 baht or 3.18%.
2.KTC closed at 47.50 baht, up 1.00 baht or 2.15%.
3.CBG closed at 82.75 baht, up 1.00 baht or 1.22%.
4.SAWAD closed at 47.75 baht, up 0.75 baht or 1.60%.
5.COM7 closed at 32.75 baht, up 0.50 baht or 1.55%.
In terms of the SET100 Index, the five sites with the biggest price declines are:
1.DELTA closed at 105.50 baht, down 1.50 baht or 1.40%.
2.CENTEL closed at 46.50 baht, down 1.00 baht or 2.11%.
3.KBANK closed at 129.50 baht, down 1.00 baht or 0.77%.
4.BH closed at 255.00 baht, down 1.00 baht or 0.39%.
5.MINT closed at 32.75 baht, down 0.50 baht or 1.50%.
While the SET100 index closed at 2,107.69 points, down -6.55 points or -0.31%, the SET50 index closed at 946.00 points, down -2.94 points or -0.31%, and the market index closed at 480.70 points, down – 0.04 points or -0.01%.
Mr. said Narongdet Chandrapaisarn, Director of Securities Analysis at AIRA Securities, that the Thai stock market today has a narrow swing. because there is no new factor And there is still the same factor that the market is still worried about the US Federal Reserve. Or will the Fed maintain high interest rates for a long time? Or maybe the Fed will raise interest rates again this November, which either way, will have a negative impact on the stock market, causing sentiment to be negative, along with yesterday’s falling energy prices , causing energy stocks. Oil has slowed somewhat. weighing the direction of the Thai stock market
In addition, there are factors that cause the Thai stock market to absorb Because the expected earnings per share (EPS) of listed companies is 89 baht per share, foreign capital will not flow into the Thai stock market because the valuation is not is attractive.
“Thailand stock market trend next week It is expected that it may still be low. Follow US inflation numbers. That will be published next week (September 13) to see how the Fed uses monetary policy. Although the government policy announcement is on 11-12 September, the market has already detected this factor quite well. And seeing that it could be a more negative factor because he campaigns a lot, but the government’s policies may not be fully achieved. Looking at the investment framework with an important support level of 1,540 points, if it has not fallen out, it is likely that the market will rebound. The resistance level is set at 1,570 points next week,” said Mr Narongdet.
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