Thai shares down amid Asia rally
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The Stock Exchange of Thailand Index has failed to catch up with other bourses, continuing its fall from last week.
At noon, the SET Index stood at 1,500.97 points, losing 20.51 points or 1.35 per cent. Turnover was brisk at Bt50.5 billion. At one point, it plunged by 45 points, to 1,477.28 points. MSCI's broadest index of Asia-Pacific shares outside Japan extended early gains and was up 1.4 per cent by midday.
On Friday, the SET Index lost 20 points, due mainly to local institutional investors' net sells worth Bt4.9 billion. During Thursday and Friday, foreign net-buys were worth only Bt475 million.
Asia Plus Securities expected the SET Index to move sideways down, due to lower foreign inflows. At 1,520 points, the Index offered both capital gain and foreign exchange gains, it said.
The brokerage house said the Index could stage a technical rebound today, possibly rising to 1,540 points. It does not expect the Index to end the day below 1,510 points.
Tisco Securities expected a return of foreign inflows worth US$956 million (approximately Bt33 billion) ahead of September 16 when the Thai market's weighting in FTSE Index will be lifted. Yet, it urged investors to stop loss if the index falls below 1,520 points today.
Across Asia, Asian shares rose on Monday after a weaker-than-expected US jobs report prompted investors to trim expectations that the Federal Reserve would hike interest rates as early as this month.
US jobs report showed nonfarm payrolls rose by 151,000 jobs in August, after an upwardly revised 275,000 increase in July. Economists polled by Reuters had expected a rise of 180,000.
Richmond Federal Reserve Bank President Jeffrey Lacker said on Friday that the US economy appears strong enough to warrant significantly higher interest rates.
However, BNY Mellon senior global markets strategist Marvin Loh told Reuters that he expects the Fed to hold off on any rate hikes until December, when they can factor in three additional jobs reports as well as the U.S. third-quarter growth report.
"We will add that we have been fooled by the FOMC on September moves in prior years and vow not to fall into that same trap again," Loh wrote.
Markets were also keeping watch on the two-day summit of leaders from G20 nations, in Hangzhou, China.
