Thai bourse slides amid seven-year low oil prices, China's trade data

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Thai bourse slides amid seven-year low oil prices, China's trade data
THE NATION, AGENCIES

BANGKOK: -- THE Stock Exchange of Thailand yesterday declined on a drop in oil prices and China's trade data in line with global markets, including those in Asia.

The SET Index closed down by 26.59 points to 1,318.13 on a total turnover of Bt36.92 billion.

Local brokerage houses said oil and related stocks were sold as investors were spooked by a seven-year low in world oil prices.

PTT shares closed at Bt241, down Bt11, negatively affecting the SET Index by 3.3 points. PTT Exploration and Production (PTTEP) shares also plunged by Bt4 to close at Bt57.75, driving the index down by 1.67 points.

Meanwhile, newly listed Star Petroleum Refining (SPRC) recorded a decline of Bt1, down by 11.11 per cent from its initial public offering (IPO) price of Bt9 on its first day of trading yesterday.

The Thai stock market also faced downward pressure from a potential increase in the US Fed fund rate next week, suggesting that investors should take profit and hold more cash in the short term, said UOB Kay Hian Securities (Thailand).

Oil prices struggled at seven-year lows yesterday, sending Asian energy firms plunging in line with their US and European counterparts after the decision by the Organisation of the Petroleum Exporting Countries (Opec) to maintain output dimmed hopes for a recovery in the black gold.

Another tumble in Chinese imports and exports exacerbated the decline of regional markets, reinforcing worries about the state of the world economy as the US Federal Reserve considers raising interest rates.

A global supply glut, weak demand and the growth slowdown in China have combined with soaring production to send crude oil slumping by more than 60 per cent over the past 18 months.

Investors had been hoping that with the market increasingly tight, Opec could find a way to ease output and release some pressure on prices.

However, the cartel's six-monthly meeting on Friday ended without agreement among bickering members to make any cuts, which in turn battered global markets.

On Monday US benchmark West Texas Intermediate sank 5.8 per cent and Brent crude shed 5.3 per cent, hitting levels not seen since February 2009. WTI had tumbled 2.7 per cent and Brent lost 1.9 per cent on Friday.

US giant ExxonMobil, France's Total and Italy's Eni all fell by 2-3 per cent, with many smaller producers and oil-services companies suffering even bigger drops.

And Asian firms continued those losses as crude failed to recover. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.8 per cent, to 3,623.02, while the Shanghai Composite Index lost 1.9 per cent, to 3,470.07 points.

Hong Kong-listed Chinese giant CNOOC ended down 3.5 per cent, while PetroChina closed off 2 per cent in Shanghai.

Source: http://www.nationmultimedia.com/business/Thai-bourse-slides-amid-seven-year-low-oil-prices--30274535.html


-- The Nation 2015-12-09

[vukovar77]

Yeah,now is good time to be patient and try "to catch" stocks on the "bottom".

Special stock with regular dividend yield!

Hard to say,but I think next year will open a lot good buying opportunities in SET!!!

[onni4me]

How things are developing I would avoid stock market next year totally.

That said, I don't deny that there are buying opportunities. I'm just not a gambling man.

In my estimate the slowdown could take more than a year and the best buys are still far ahead. Just my opinion, though.

[Lupatria]

Happiness to all Thais (except shareholders).

[Ulic]

Buy low sell high. But we are just not sure how low is low.

[huawei]

Itching to buy some BTS shares. Under 9.

[Gutenberg]

Itching to buy some BTS shares. Under 9.

They look really interesting... but you know, instead of 10, there can be also an 8

[IMA_FARANG]

The Thai stock market also faced downward pressure from a potential increase in the US Fed fund rate next week, suggesting that investors should take profit and hold more cash in the short term, said UOB Kay Hian Securities (Thailand).

Baht

---------------------------

I don't want to "hijack" this topic... but I am wondering what will happen to the Thai Baht U.S. Dollar exchange rate considering that quote above.

Any of the "experts" that can give mea n idea of what to expect when the Fed rate change occurs next week.?

I would guess it could mean dollar up, Baht down.... but I am far from an "expert"

Edited December 9, 2015 by IMA_FARANG

[Srikcir]

Oil prices struggled at seven-year lows yesterday

That is just the tip of the oil derrick.

Wait until Iran begins increasing its oil exports now that sanctions have been lifted to fuel its own infrastructure improvements. We may see an oil price war that will look like the 1960's.