Thai stocks dropped as traders remained concerned about a potential financial crisis following the fallout from U.S.-based Silicon Valley Bank (SVB).
The SET Index in Thailand has lost 19.32 points, or 1.23%, to 1,553.75 as of 11:58 AM (Bangkok time).
Maybank Securities (Thailand) (MST) stated the Thai market’s movement was in line with other markets across the world, amid fears of a global domino effect from the failure of a tech startup-focused lender Silicon Valley Bank, which led to global funds withdrawing funding from stocks in an effort to reduce risks. The concerns also triggered selling in U.S. and EU financial counters.
The brokerage expected the SET today to move sideways in a range of 1,550 points support and 1,580 points resistance, and suggesting traders to focus on stocks with strong earnings growth potential.
Krungsri Securities, meanwhile, forecasted that the SET would fall to its 1,555 support level. The analyst stated that the shutdown of SVB and Signature Bank could have ripple effects on other banks, drag the economy, and dampen investment sentiment, and that the Bank Term Funding Program established by the U.S. government to protect financial institutions seems to have done little to ease concerns about the stability of the banking system. The benchmark index may also feel the effects of falling crude prices.
