FX.co ★ Thai Stock Market May Take Further Damage On Wednesday

The Thai stock market concluded a successful four-day winning streak on Tuesday, having gained nearly 20 points or 1.4 percent but then faltering. The Stock Exchange of Thailand (SET) now hovers just above the 1,465-point mark, with indications that losses may likely increase on Wednesday. This downturn is part of a broader negative trend expected across Asian markets due to unfavorable economic reports and earnings data, as well as potential profit-taking activities. The downward trajectory seen in European and U.S. markets suggests that Asian markets might follow a similar path.

On Tuesday, the SET experienced a modest decline, primarily impacted by downturns in the food, consumer, industrial, property, and service sectors, although technology stocks provided some resistance. The index fell by 5.07 points, a 0.34 percent decrease, closing at 1,465.03 after fluctuating between 1,463.32 and 1,478.37 throughout the day. The market saw a volume of 14.039 billion shares traded, valued at 64.715 billion baht. The session closed with 443 stocks declining, 109 advancing, and 117 remaining unchanged. Notable movements included Advanced Info’s 0.72 percent gain, Thailand Airport's 0.39 percent drop, Asset World’s 0.53 percent dip, and Banpu’s steep 5.93 percent fall.

Other significant shifts included Bangkok Bank’s 0.64 percent gain, Bangkok Dusit Medical’s 0.87 percent rise, Bangkok Expressway’s 0.61 percent decrease, and B. Grimm’s 0.85 percent drop. Meanwhile, BTS Group fell by 2.18 percent, CP All Public by 1.15 percent, and Charoen Pokphand Foods climbed by 1.00 percent. Energy Absolute declined sharply by 4.00 percent, Gulf rose by 1.16 percent, and Krung Thai Card rallied by 2.07 percent. PTT Oil & Retail saw an increase of 1.20 percent, while PTT fell by 2.19 percent, PTT Exploration and Production shrank by 2.73 percent, and PTT Global Chemical plunged by 2.80 percent. SCG Packaging plummeted by 3.67 percent, Siam Commercial Bank dropped by 0.91 percent, Siam Concrete cratered by 4.89 percent, Thai Oil retreated by 3.02 percent, and True Corporation, TTB Bank, Kasikornbank, and Krung Thai Bank remained unchanged.

The lead from Wall Street on Tuesday was less encouraging, as major indices opened unevenly but quickly turned negative, closing markedly lower. The Dow Jones Industrial Average fell by 324.80 points or 0.75 percent to 42,740.42. The NASDAQ declined 187.10 points or 1.01 percent to 18,315.59, while the S&P 500 decreased by 44.59 points or 0.76 percent, ending at 5,815.26.

This pullback in the U.S. was driven by profit-taking as traders sought to capitalize on the markets' recent strengths, particularly after the Dow and S&P 500 reached all-time closing highs on Monday. Additionally, negative impacts from corporate earnings reports contributed to the decline, with major entities like UnitedHealth (UNH) and Citigroup (C) seeing decreases, although Walgreens Boots Alliance (WBA) performed well with its positive results.

In terms of U.S. economic data, the Federal Reserve Bank of New York revealed that regional manufacturing activity returned to a state of contraction in October.

On the commodities front, oil prices plummeted on Tuesday. This drop was attributed to diminishing concerns about supply disruptions amid reports that Israel would avoid targeting Iran's oil facilities. Consequently, West Texas Intermediate crude oil futures for November dropped $3.25 or 4.4 percent, settling at $70.58 per barrel.