SET index can't sustain 1,200 pts level
The Stock Exchange of Thailand index on Monday briefly hit the 1,200-points psychological level, but the gain was erased on a series of fresh bad news.
At the close, the Thai bourse lost in tandem with most other Asian markets, after International Monetary Fund Managing Director Christine Lagarde warned of the risk of slowing growth in emerging markets and home prices in China posted the worst performance in a year. The market ended the day at 1,189.50 points, down 0.06 points or 0.01 per cent, on turnover of Bt40.34 billion.
At one time, it hit 1,201.61 points. It slightly weakened to 1,201.36 as the morning session ended, gaining 11.80 points from the previous closing or 0.99 per cent.
As of 3pm, the index was at 1,197.26 points, on turnover of Bt25.4 billion.
The morning session was attributable to the robust domestic economic outlook as well as signs of recovery in the US economy.
In The Nation's "Market View" column, Sukit Udomsirikul, senior vice president for retail strategy of SCB Securities, anticipated the increase on the back of capital inflows.
"The positive US economic data is the key support that can cool down investors’ concerns of a slowdown in China’s economy while we are waiting for a new round of China’s easing of monetary policy. Foreign investors are still expected to be net buyers this week in response to falling systemic risks," he said.
In the same column, Chanpen Sirithanarattanakul, head of research of DBS Vickers Securities (Thailand), noted that DBS expected Thailand's economy to grow 5.5 per cent this year and that corporate earning growth rate is expected to be as strong as 18 per cent this year and the next, among the highest in the region. This is on the back of resumption of operations, recovery of post-flood demand, and cut in corporate income tax.
