FX.co ★ More Pain Predicted For Thai Stock Market

Ahead of the Chulalongkorn Day holiday on Wednesday, the Thai stock market experienced a downward trend, declining for three consecutive sessions. This resulted in a cumulative drop of almost 25 points or 1.8 percent. The Stock Exchange of Thailand, now slightly above the 1,470-point mark, is anticipated to open lower again on Thursday.

Globally, the forecast for Asian markets appears negative, primarily due to rising treasury yields and a pessimistic outlook on interest rates. Following the trend set by European and U.S. markets, Asian stocks are expected to decline.

On Tuesday, the SET closed sharply lower, driven by losses in the food, consumer, finance, property, resource, and service sectors. The index fell by 18.42 points, marking a 1.24 percent decrease, ending the day at 1,470.32, after fluctuating between 1,467.77 and 1,487.80. The trading volume was 10.200 billion shares with a total value of 57.044 billion baht. The market saw 438 stocks decline, 93 gain, and 137 remain unchanged.

Key movements on the day included Advanced Info, which dropped 3.17 percent; Thailand Airport, down 0.79 percent; and Asset World, declining by 1.06 percent. Significant losses were also observed in Banpu (0.78 percent), Bangkok Bank and PTT Exploration and Production (both by 1.95 percent). Other notable declines included Bangkok Dusit Medical at 2.54 percent, Bangkok Expressway and PTT Oil & Retail each decreasing by 2.42 percent, and Charoen Pokphand Foods, which fell by 3.85 percent. Energy Absolute saw a significant decrease of 5.45 percent, while Gulf and Krung Thai Bank each declined by 3.27 percent.

Meanwhile, SCG Packaging showed a positive move, gaining 0.94 percent, and True Corporation surged by 3.42 percent. However, Siam Commercial Bank decreased by 0.88 percent, Siam Concrete by 1.42 percent, and TTB Bank retreated by 2.17 percent.

Wall Street provided weak leads, as major averages opened lower on Wednesday, remaining in negative territory, albeit recovering slightly from session lows. The Dow dropped by 409.94 points or 0.96 percent to close at 42,514.95, while the NASDAQ fell 296.47 points or 1.60 percent to 18,276.47. The S&P 500 decreased by 53.78 points or 0.92 percent, ending at 5,797.42.

This downturn in Wall Street was largely influenced by a significant increase in treasury yields, marking their highest level in nearly three months. Concerns are mounting that the Federal Reserve might delay interest rate cuts longer than previously expected. While a quarter-point rate reduction is still anticipated next month, doubts regarding an additional cut in December are rising.

On the commodities front, oil prices saw a decline on Wednesday. This was precipitated by data indicating a larger-than-expected rise in U.S. crude oil inventories, alongside a stronger dollar. December futures for West Texas Intermediate crude fell by $0.97, or 1.35 percent, settling at $70.77 per barrel.