Thai bourse slides amid seven-year low oil prices, China's trade data
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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 lost 1.99 per cent to 1,306.98 points 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.
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.
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).
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.
