Covid situation in Myanmar may pressure SET
An expert said that the Covid-19 situation in Myanmar may affect the Thai stock market, especially in relation to listed companies whose income bases are in the neighbouring country.
When the number of Covid-19 patients in Yangon rose to 675, the Myanmar government put the city under lockdown until at least October 1.
The country now has 3,015 Covid-19 patients as of Monday (September 14).
Asia Plus Securities said investors are concerned that the virus situation in Myanmar may pressure the Thai stock market into shrinking, especially if cases in the neighbouring country are the reason for a second-wave of infections in Thailand.
Terdsak Taweethiratham, executive vice president of the securities firm, said the Thai economy is currently facing a slowdown, and if a second wave happens, then Thailand will not be attractive to investors.
He also said cases in Myanmar would affect listed companies whose source of revenue are located in Myanmar.
However, he said, if the virus does not spread to Thailand, then the listed companies will not be affected that much as their investment in Myanmar is quite small and the country has only put some areas under lockdown.
Companies that rely on Myanmar for revenue include Carabao Group (CBG), Osotspa (OSP) and Siam Global House (GLOBAL). Their shares closed at Bt110.50, Bt37.25 and Bt18.50, dropping 2.64 per cent, 2.61 per cent and 3.65 per cent, respectively.
Terdsak said his company expects the resistance of the Stock Exchange of Thailand (SET) Index at 1,270 to 1,280 point. However, he said, investors should not rely on this estimate because two factors – Covid-19 and Thailand’s political situation – are pressuring the market.