Saturday, July 24, 2021

business

Thai stocks down as US Fed signals QE tapering


The Stock Exchange of Thailand (SET) Index closed at 1,554.54 on Thursday, down 7.70 points or 0.49 per cent. Total transactions amounted to THB90 billion with an index high of 1,568.72 and a low of 1,554.54.

In the morning session, Krungsri Securities expected the day’s index to fluctuate between 1,555 and 1,570 points after minutes of a key Federal Reserve meeting in April showed officials were cautiously optimistic about a US recovery.

The Fed also signalled it would be open “at some point” to discussing a scaling back of the central bank’s massive bond purchases (quantitative easing or QE). QE tends to boost stock prices around the world by increasing the money supply.

Also pressuring the SET are the falling oil price amid progress on an Iran nuclear deal, plus the outflow of foreign funds, Krungsri Securities said.

“However, the index would rebound from mass buy-ups of shares which gained positive sentiment, and on hopes of Thai economic recovery after mass vaccination launches in June,” it added.

The 10 stocks with the highest trade value today were TIDLOR, PTT, KBANK, STGT, PTTEP, CPF, BEC, KEX, STEC and THCOM.

Other Asian indices were mixed:

Japan's Nikkei Index closed at 28,098.25, up 53.80 points or 0.19 per cent.

China's Shanghai SE Composite Index closed at 3,506.94, down 4.02 points or 0.11 per cent, while the Shenzhen SE Component Index closed at 14,535.10, up 50.64 points or 0.35 per cent.

Hong Kong's Hang Seng Index closed at 28,450.29, down 143.52 points or 0.50 per cent.

South Korea's KOSPI closed at 3,162.28, down 10.77 points or 0.34 per cent.

Taiwan's TAIEX Index closed at 16,042.36, down 90.30 points or 0.56 per cent.

Published : May 20, 2021

By : The Nation