The Stock Exchange of Thailand (SET) Index closed at 1,566.36 on Monday, up 2.40 points or 0.15 per cent. The volume of total transactions was Bt76 billion with an index high of 1,571.74 and a low of 1,555.38.
In the morning session, a Krungsri Securities analyst expected the day’s index to fall to a support line between 1,555 and 1,560 after the US Federal Reserve declined to extend a post-pandemic rule that lowered the amount of capital banks had to hold.
“The index would also be under pressure from rising US bond yield and volatility in fund flows,” said the analyst.
The 10 stocks with the highest trade value today were OR, BANPU, TTA, PRM, CPALL, PTT, AMANAH, CPF, KBANK and AOT.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 29,174.15, down 617.90 points or 2.07 per cent.
China’s Shang Hai SE Composite Index closed at 3,443.44, up 38.78 points or 1.14 per cent, while Shenzhen SE Component Index closed at 13,760.97, up 154.96 points or 1.14 per cent.
Hong Kong’s Hang Seng Index closed at 28,885.34, down 105.60 points or 0.36 per cent.
South Korea’s KOSPI closed at 3,035.46, down 4.07 points or 0.13 per cent.
Taiwan’s TAIEX Index closed at 16,189.22, up 118.98 points or 0.74 per cent.
The Stock Exchange of Thailand (SET) Index dropped by 1.69 points, or 0.11 per cent, to 1,562.27 on Monday morning.
The SET Index is expected to fall to the support line between 1,555 and 1,560 after the US Federal Reserve declined to extend a post-pandemic exemption that lowered bank capital requirements, a Krungsri Securities analyst said.
“Besides, the index would be under pressure due to rising US bond yield and volatility in funds flows,” he said.
He recommended that investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC and MAJOR, which benefit from positive news of Covid-19 vaccine in Thailand.
▪︎ HANA, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ ICHI, SAPPE, RBF, DOD, IP, TACC, GUNKUL, KISS and ZIGA, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,563.96 on Friday, down 4.86 points or 0.31 per cent. Total transactions amounted to Bt88.71 billion with an index high of 1,566.67 and a low of 1,554.96.
The price of gold was unchanged from Saturday’s close in morning trade on Monday, the Gold Traders Association reported.
As of 9.25am, the buying price of a gold bar was Bt25,300 per baht weight and selling price Bt25,400, while gold ornaments were priced at Bt24,847.24 and Bt25,900, respectively.
Spot gold price dropped to US$1,736 (Bt53,642) per ounce after rising by $9.2 to $1,741.7 on Friday, the highest in three weeks, from uncertainty over inflation and the fall in the US stock market.
Hong Kong gold price dropped by HK$30 to $16,110 (Bt64,097) per tael, the Chinese Gold and Silver Exchange Society reported.
The outcome of the Monetary Policy Committee (MPC) meeting on March 24 could determine the direction of the Stock Exchange of Thailand (SET) and the baht next week, experts at Kasikornbank said on Sunday.
Kasikorn Securities said the SET Index’s support line is between 1,530 and 1,550 points, while its resistance line is between 1,575 and 1,585 points.
The securities company advised investors to follow the MPC meeting, Thailand’s political situation, the US bond yield direction, the Covid-19 situation and US-China relations.
“US economic data that warrants close monitoring include new home sales, durable goods orders, consumer spending and manufacturing and services Purchasing Managers Index [PMI],” Kasikorn Securities said.
“Other important factors that warrant close monitoring include the euro-zone’s manufacturing and services PMI.”
The SET Index closed at 1,563.96 on Friday, down 4.86 points or 0.31 per cent. Total transactions amounted to Bt88.71 billion with an index high of 1,566.67 and a low of 1,554.96.
Meanwhile, Kasikornbank forecast the baht would move between 30.70 and 31.10 to the US dollar next week.
The bank advised investors to follow the MPC meeting outcome, Thai February exports, US Federal Reserve chairman’s statement, US bond yield direction and Covid-19 outbreak.
“US economic data that warrants close monitoring include home sales, durable goods orders, consumer spending, inflation rate based on Core Personal Consumption Expenditure Price Index, Consumer Confidence Index, gross domestic product in the fourth quarter of 2020, weekly jobless claims and PMI,” Kasikornbank said.
“Other important factors that warrant close monitoring include China’s Loan Prime Rate, plus euro-zone and UK PMI.”
The baht closed at 30.83 to the dollar on Friday, weakening from 30.79 on Friday last week.
The Stock Exchange of Thailand (SET) Index closed at 1,563.96 on Friday, down 4.86 points or 0.31 per cent. Total transactions amounted to Bt88.71 billion with an index high of 1,566.67 and a low of 1,554.96.
In the morning session, a Krungsri Securities analyst predicted the SET would fall to a support line at 1,555-1,560 points as the US bond yield rose amid uncertainty over inflation, and the oil price fell after lockdowns were reimposed in Europe.
“Also, mass sell-offs of Thai shares after the FTSE re-weighted Thai stocks from 2.3 per cent to 2.25 per cent will pressure the index,” the analyst said.
The 10 stocks with the highest trade value today were OR, PTT, DELTA, PTTEP, CPALL, GUNKUL, BBL, PTTGC, CPF and IVL.
Other Asian indices were on the slide:
Japan’s Nikkei Index closed at 29,792.05, down 424.70 points or 1.41 per cent.
China’s Shang Hai SE Composite Index closed at 3,404.66, down 58.40 points or 1.69 per cent, while Shenzhen SE Component Index closed at 13,606.00, down 357.92 points or 2.56 per cent.
Hong Kong’s Hang Seng Index closed at 28,990.94, down 414.78 points or 1.41 per cent.
South Korea’s KOSPI closed at 3,039.53, down 26.48 points or 0.86 per cent.
Taiwan’s TAIEX Index closed at 16,070.24, down 217.60 points or 1.34 per cent.
The Stock Exchange of Thailand (SET) Index dropped by 4.22 points, or 0.27 per cent, to 1,564.60 in the morning session on Friday.
A Krungsri Securities analyst predicted the SET would fall to the support line between 1,555 and 1,560 points due to rising bond yield amid uncertainty over inflation and falling oil price after many European countries reimposed lockdown measures.
The US bond yield had risen over 1.7 per cent, while oil price had fallen below US$60 per barrel on Thursday.
“Besides, mass sell-offs of Thai shares after the FTSE rebalanced Thai stocks from 2.3 per cent to 2.25 per cent would pressure the index,” an analyst said.
He recommended investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC and MAJOR, which benefit from positive news of the Covid-19 vaccine in Thailand.
▪︎ HANA, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ CBG, ICHI, SAPPE, RBF, DOD, IP, TACC, GUNKUL and KISS, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,568.82 on Thursday, up 2.06 points or 0.13 per cent. Total transactions amounted to Bt81 billion with an index high of 1,583.30 and a low of 1,567.67.
The price of gold dropped by Bt50 per baht weight in the morning trade on Friday, the Gold Traders Association reported.
As of 9.33am, the buying price of a gold bar was Bt25,250 per baht weight and selling price Bt25,350 while gold ornaments cost Bt24,801.76 and Bt25,850, respectively.
On Thursday’s close, the buying price of a gold bar was Bt25,300 per baht weight and selling price Bt25,400 while gold ornaments cost Bt24,847.24 and Bt25,900, respectively.
Spot gold price fell to US$1,731 (Bt53,513) per ounce after rising by $5.4 to $1,732.5 on Thursday, due to the US Federal Reserve’s signal that it would maintain interest rate at a low level until 2023. But gold gained some positive sentiment from the fall in the US stock market.
Hong Kong gold dropped by HK$60 to $16,040 (Bt63,846) per tael, the Chinese Gold and Silver Exchange Society reported.
By Syndication Washington Post, Bloomberg · Claire Ballentine, Vildana Hajric
Stocks fell from record highs, oil slumped and Treasury yields touched some of the highest levels in more than a year amid concern the Federal Reserve risks letting inflation accelerate.
The rout in risk assets picked up in the afternoon, starting with a sell-off in crude. Oil plunged 8% on concern new restrictions in Europe will hamper demand. Two weeks ago it soared past $65 a barrel to the highest in almost two years.
The spike in Treasury yields dented demand for tech shares with high valuations, sending the Nasdaq 100 Index tumbling 3.1%. Swings in asset prices also picked up as they often do around major expirations of options and futures contracts, such as tomorrow’s ‘quadruple witching’ event.
“We’re seeing a pattern where an uncomfortable spike in the 10-year Treasury reminds equity investors that their tech stocks are trading well above average,” said Mike Bailey, director of research at FBB Capital Partners.
Ten-year Treasury yields climbed to 1.75% for the first time since January 2020, while the 30-year breached 2.5% for the first time since August 2019 in the wake of Wednesday’s Federal Reserve meeting. Fed Chairman Jerome Powell’s apparent willingness to keep pumping support into the economy and let it run hotter has spurred bets on faster growth and inflation, sending market expectations of price pressures to multi-year highs.
Oil plunged as vaccination efforts in some parts of the world stalled, casting uncertainty over the speed of an economic recovery and a full rebound in global oil demand. West Texas Intermediate crude futures declined for a fifth session, the longest stretch of daily losses in more than a year.
U.S. curve climbed on the Fed’s assurance of support
Read: Treasury Yields Top 1.75% After Powell Spurs Bets on Inflation
In Asia and Europe, stocks were boosted by lingering enthusiasm from the Fed’s outlook for stronger growth. Automakers and banks, which tend to outperform during cyclical upswings, were higher in Europe. Japan’s Topix jumped past the 2,000 mark for the first time since 1991, becoming the region’s top-performing major equity index this year.
Japan’s government bond yields rose on a Nikkei report that the Bank of Japan is considering widening the trading range around the 10-year target, which could spur concerns about policy tightening.
These are some of the moves in markets:
Stocks
The S&P 500 Index sank 1.5% to 3,915.50 as of 4:02 p.m. EDT, the lowest in more than a week on the largest tumble in three weeks.
The Dow Jones industrial average sank 0.5% to 32,862.37, the biggest dip in two weeks.
The Nasdaq Composite Index sank 3% to 13,116.17, the lowest in more than a week on the largest tumble in three weeks.
The Nasdaq 100 Index sank 3.1% to 12,789.14, the lowest in more than a week on the biggest tumble in three weeks.
The Stoxx Europe 600 Index rose 0.4% to 426.59.
Currencies
The Bloomberg Dollar Spot Index rose 0.5% to 1,139.39, the biggest advance in more than a week.
The euro fell 0.5% to $1.1915, the largest fall in more than a week.
The British pound fell 0.3% to $1.3928.
South Africa’s rand weakened 0.9% to 14.7799 per dollar, the largest fall in more than a week.
Bonds
The yield on two-year Treasurys gained two basis points to 0.16%, the highest in more than a week on the biggest advance in more than a week.
The yield on 10-year Treasurys jumped eight basis points to 1.72%, the highest in about 14 months.
The yield on 30-year Treasurys gained five basis points to 2.47%, the highest in almost 20 months.
Germany’s 10-year yield climbed three basis points to -0.26%, the highest in almost three weeks.
Britain’s 10-year yield increased five basis points to 0.875%, the highest in more than 21 months.
Commodities
West Texas Intermediate crude sank 8% to $59.41 a barrel, hitting the lowest in almost four weeks with its fifth straight decline and the largest tumble in 11 months.
Gold weakened 0.6% to $1,734.60 an ounce, the biggest fall in more than a week.
The Stock Exchange of Thailand (SET) Index closed at 1,568.82 on Thursday, up 2.06 points or 0.13 per cent. Total transactions amounted to Bt81 billion with an index high of 1,583.30 and a low of 1,567.67.
In the morning session, a Krungsri Securities analyst expected the day’s index to hit a resistance line between 1,575 and 1,580 points after the US Federal Reserve signalled it would maintain a low interest rate of 0.25 per cent and retain quantitative easing (bond-buying stimulus) to maximise employment.
“However, investors should beware of mass sell-offs of Thai shares in response to the FTSE’s move to rebalance Thai shares from 2.3 per cent to 2.25 per cent. The rebalance will take effect on Friday [March 19],” said Krungsri Securities.
The 10 stocks with the highest trade value today were OR, KBANK, STA, PTT, GUNKUL, BBL, IRPC, ICHI, IVL and CPF.
Other Asian indices responded to the Fed news with stronger rises than the SET: Japan’s Nikkei Index closed at 30,216.75, up 302.42 points or 1.01 per cent.
China’s Shang Hai SE Composite Index closed at 3,463.07, up 17.52 points or 0.51 per cent, while Shenzhen SE Component Index closed at 13,963.92, up 154.16 points or 1.12 per cent.
Hong Kong’s Hang Seng Index closed at 29,405.72, up 371.60 points or 1.28 per cent.
South Korea’s KOSPI Index closed at 3,066.01, up 18.51 points or 0.61 per cent.
Taiwan’s TAIEX Index closed at 16,287.84, up 72.02 points or 0.44 per cent.
The Stock Exchange of Thailand (SET) Index rose by 14.56 points or 0.93 per cent to 1,581.32 in the morning session on Thursday.
A Krungsri Securities analyst expected the index to hit the resistance line between 1,575 and 1,580 points in response to US Federal Reserve signals that it would maintain the interest rate at a low 0.25 per cent and continue using quantitative easing.
The Fed also signalled that it would maintain the rate until it reached its goal to maximise employment and see price stability, expecting the US gross domestic product to rise this year.
“However, investors should beware of mass sell-offs of Thai shares in response to the FTSE’s move to rebalance Thai shares from 2.3 per cent to 2.25 per cent. The rebalance will be effective on Friday [March 19],” he said.
He recommended investors buy:
▪︎ AOT, Mint, Centel, AAV, BA, CPN, CRC and Major, which benefit from positive news of a Covid-19 vaccine in Thailand.
▪︎ Hana, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ CBG, Ichi, Sappe, RBF, DOD, IP, TACC, Gunkul and Kiss, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,566.76 on Wednesday, up 2.73 points or 0.17 per cent. The volume of total transactions was Bt92.17 billion, with an index high of 1,571.53 points and a low of 1,559.22.
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