Thai shares slightly hit by foreign net-sell
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Foreign investors remained net-sellers of Thai shares Monday, as external and internal uncertainties hit the Thai market.
The net-sell position today was tuned at Bt1.94 billion, boosting this month's net-sell to Bt4.97 billion. Year to date, the net-sell position hit Bt91.4 billion.
Despite that, the Stock Exchange of Thailand managed to stay in the positive territory today with a slight gain of 0.05 per cent. At the close, the index rose 0.65 points to 1,371.40 points, on thin turnover of Bt26.7 billion.
Tisco Securities said in a note that negative included the rejection of the draft charter yesterday, which would delay the election further by six months. Meanwhile, US and Chinese economic developments remained key external factors. US job growth in August was lower than expected while investors are increasingly concerned with China's economic slowdown.
Employers in US added 173,000 jobs in August, lower than the Bloomberg consensus forecast of 217,000. The surprise came from the August unemployment rate which eased lower than expected to 5.1% (from 5.3% in July) lowest since April 2008, and made even more impressive by the fact it was not “helped” by a shrinking labor force as the labor force participation rate remained unchanged at 62.6% even though this remains the lowest participation rate since Oct 1977. Under-employment also eased further to 10.3% (from 10.4% in July), the lowest since June 2008.
UOB said in a note that based on trading in futures and options data compiled by Bloomberg, the probability of a rate hike in the United States by September dropped to 28 per cent on September 3, from 30 per cent on September 4. The October’s chances also lowered to 39.5% (from 41.2 per cent previously) while a December hike increased to 58.9 per cent (from 56.5 per cent).
The bank however maintained its expectation that the Federal Reserve would cut the interest rate by 25 basis points in September.
Today, Hong Kong and Shanghai stock markets ended lower as investors awaited this week's data releases, including on inflation, trade and investment, while Beijing said revised figures showed the economy had grown slower in 2014 than was originally thought.
