Tuesday, July 07, 2020

Thai shares end 3-week gain

Mar 08. 2016
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By The Nation, AFP

The Stock Exchange of Thailand Index declined 1.51 per cent today, after extending its winning streak to three weeks.
The index lost 21.13 points to end at 1,374.62, on turnover of Bt69.26 billion. 
Tisco Securities today reiterated the view that the winning streak would end given that the index had gained 4.7 per cent in the past five trading days and 9.3 per cent in the past three weeks. 
Thai shares were buoyed largely because of anticipation of delayed rate hike in the US and further relaxation in the euro zone as well as recovery in oil prices. Foreign funds are returning to emerging markets in search of better returns. 
In the first week of March, foreign net buys of Thai shares amounted to Bt billion. Until March 7, the year-to-date net buys totalled Bt6.7 billion.
Despite the loss today, Tisco Securities noted that the index should not fall below 1,370 points. 
Asian stocks elsewhere also fell today as China released data showing another hefty slump in exports. Investors cashed in after enjoying their best rally so far this year.
Profit-takers made the most of the latest surge in prices that has come on the back of upbeat US data and hopes that China will take further steps to kickstart the world's number-two economy.
Frederic Neumann, co-head of Asian economic research at HSBC Holdings in Hong Kong, said: "Exports got pummelled again in February, highlighting the downturn in global demand.
"It's easy to blame Chinese New Year distortions, but there is a much deeper malaise that is becoming apparent in the numbers."
The Chinese customs data was released as the nation's leaders hold their annual policy gathering, which started Saturday with Premier Li Keqiang targeting 6.5 to 7 per cent economic growth this year.
The lower and wider band indicates leaders accept the tough work ahead as they look to recalibrate the giant economy from one dependent on exports and investment to domestic-driven growth.


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