SET sinks below 1,500 points after bank sell-offs, drop in foreign inflows

[rooster59]

SET sinks below 1,500 points after bank sell-offs, drop in foreign inflows

By The Nation

 

 

The Stock Exchange of Thailand (SET) Index closed at 1,497.88 on Friday, down 15.63 points or 1.03 per cent. Total transactions amounted to Bt96.69 billion with an index high of 1,518.05 and a low of 1,494.45.

 

 

In the morning session, an analyst at Krungsri Securities expected the index to fall to between 1,500 and 1,505 points despite the Bangkok Metropolitan Administration's move to allow 13 types of business to reopen in Bangkok.

 

"The index will be under pressure due to a decline in foreign fund inflows and mass sell-offs of bank shares [KTB, SCB and BBL] after their fourth-quarter performance was worse than expected," he said.

 

The 10 stocks with the highest trade value today were KBANK, BBL, PTT, STGT, SCB, KTC, CPN, TISCO, GPSC and SCC.

 

As of 4.30pm, the price of oil dropped by US$0.88 or 1.66 per cent to $52.25 per barrel, while gold dropped by $4.10 or 0.22 per cent to $1,861.80 per ounce.

 

Other Asian indices were mixed:

 

Japan’s Nikkei Index closed at 28,631.45, down 125.41 points or 0.44 per cent.

 

China’s Shang Hai SE Composite Index closed at 3,606.75, down 14.51 points or 0.40 per cent, while Shenzhen SE Component Index closed at 15,628.73, up 108.13 points or 0.70 per cent.

 

Hong Kong's Hang Seng Index closed at 29,447.85, down 479.91 points or 1.60 per cent.

 

South Korea's KOSPI Index closed at 3,140.63, down 20.21 points or 0.64 per cent.

 

Taiwan's TAIEX Index closed at 16,019.03, down 134.74 points or 0.83 per cent.

 

Source: https://www.nationthailand.com/business/30401663?utm_source=homepage&utm_medium=internal_referral

 

-- © Copyright The Nation Thailand 2021-01-23

 

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[smedly]

1 hour ago, rooster59 said:

The index will be under pressure due to a decline in foreign fund inflows and mass sell-offs of bank shares

That is alarming - very difficult to predict what happens next, it depends on foreign market confidence and sentiment, if the high baht starts to decline it could cause a cascade effect and instability, nobody likes instability and nobody likes "mass selloffs" of key bank shares (red flag)

 

What happens in the US could be key especially interest rates - if the US increases interest rates or shows signs of doing so - it could trigger an Asian selloff and outflow of capital