Uncertainty over global economy pulls down SET Index

Transactions totaled at Bt69.418 billion with an index high of 1,261.66 and a low of 1,233.66.
A stock analyst at Krungsri Securities said the index is expected to fluctuate between 1,245 and 1,270 as the number of new Covid-19 cases in many countries, such as the US, Europe and Thailand, is slowing down.
“Investors are also hoping governments worldwide will ease lockdown measures, which will bring a positive sentiment for investment and economic conditions,” the analyst said.
“However, uncertainty about an economic recession, including a drop in listed companies’ revenue and profits will pressure the index.”
The analyst said the International Monetary Fund (IMF) has cut the global gross domestic product (GDP) forecast this year to a 3 per cent contraction and a 6.7 per cent contraction for Thailand's GDP due to the Covid-19 outbreak, which is considered the worst financial crisis since the Great Depression of the 1930s.
“In addition, the price of crude oil has dropped due to uncertainty following a decline in demand, which has resulted in a negative sentiment for energy stocks and has pressured the index to fluctuate.”
The top 10 stocks with the highest trade value on Wednesday were BAM, PTT, GULF, PTTGC, IVL, MINT, AOT, PTTEP, GPSC, and BBL.
As of 5pm, crude oil price dropped by US$0.53 or 2.64 per cent to $19.58 per barrel, while gold price dropped by $29 or 1.65 per cent to $1,727.70 per ounce.
Most regional markets were also on a slide:
Japan’s Nikkei Index closed at 19,550.09, down 88.72 points, or 0.45 per cent.
China’s Shanghai SE Composite Index closed at 2,811.17, down 16.11 points, or 0.57 per cent, while Shenzhen SE Component Index closed at 10,417.37, down 58.33 points, or 0.56 per cent.
Hong Kong’s Hang Seng Index closed at 24,145.34, down 290.06 points, or 1.19 per cent.
Taiwan’s TAIEX Index closed at 10,447.21, up 114.27 points, or 1.11 per cent.