THURSDAY, March 28, 2024
nationthailand

Thai shares lose their shine

Thai shares lose their shine

Brokerage houses expected the Stock Exchange of Thailand Index to continue sliding today, mainly on the absence of extra relaxation measures from the European Central Bank last week and the increasing possibility of a US rate hike.

Tisco Securities said in a research note that the Index could fall further, having 1,420 points as the next support level.
At 3.14pm, the Index stood at 1,423.12 points, losing 22.16 points or 1.53 per cent on turnover of Bt33.38 billion. At the close, the Index ended at 1,411.85 points, losing 33.43 points or 2.31 per cent, on turnover of Bt53.98 billion. 
As of Friday, the year-to-date gain narrowed to 12.21 per cent, compared to 20 per cent at the end of August.
"The Index could fall further, but at a lesser degree than what overseas bourses could face. The Thai bourse has been oversold and at the lower forward price-earning ratio, at 13.6 times, it resumes the attractiveness," Tisco said in a research note.
At 1,548.44 points, the SET Index at the end of August showed a 20.2 per cent gain from the end of last year, making the Thai bourse the best performer in Asia. In the month, foreign investors remained net-buyers of Thai shares for four consecutive months, with net-buys totalling Bt34.35 billion. The forward PER in the month stayed as high as 16.40 times.
Asia Plus Securities believed that the Index would stay above 1,400 points. This is despite the likelihood that foreign investors may start to unwind their positions. Since October 2012 until June 2016, foreign net-buys of Thai shares were tuned at Bt275 billion. Since July, they started to unloading Thai shares, with net-sells of Bt39 billion. 
Asian markets tumbled today, extending last week's global sell-off as comments from top central bankers rang alarm bells on trading floors that the days of cheap money could be numbered.
Boston Fed President Eric Rosengren said higher rates were needed to prevent the economy from overheating, while normally dovish Governor Daniel Tarullo also signalled his openness to a 2016 increase in a television interview.
"There is a consistent undertone building among the Fed Board that delaying rate hikes will hinder rather than assist the economic recovery," Stephen Innes, senior trader at OANDA, told AFP.
Their remarks came a day after the head of the European Central Bank played down the chances of fresh stimulus, while Japanese officials have also refused to give concrete assurances about new measures.
The rate hike is expected after the Federal Open Market Committee (FOMC) meeting during September 20-21. 
 
 
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