Thailand’s stock market plunged sharply on Tuesday, pressured by the energy sector from declining crude oil prices and a selloff in big-cap stocks amid rising US bond yields.
SET Index, Thailand’s main bourse, fell 21.15 points or 1.44% to 1,448.31 points as of 11:07 BKK time on Tuesday. The selloff came as the global benchmark Brent crude fell 1.6% yesterday while the U.S. West Texas Intermediate dropped 2% amid concern about rising crude supplies and pressure on demand from high interest rates.
ING wrote in its analytic report, stating that Saudi Arabia could begin to ease its additional voluntary supply cut of 1 million barrels per day. Meanwhile, Turkey is aiming to restart its production after a six-month hiatus.
Additionally, the U.S. 10-year yield rose to nearly its 15-year high on Monday, the level it just hit last week as investors were monitoring the Fed for a possibility of another rate hike.
As for the Thai stock market, SET Index’s big-cap stocks such as PTT Exploration and Production Pcl., Delta Electronics (Thailand). and PTT Pcl. had a huge impact on the market movement. Each of them plunged more than 1.75 of index points.
Meanwhile, Airports of Thailand Pcl., Gulf Energy Development Pcl., SCG Packaging Pcl., and CP All Pcl. etc. were among SET20 that pressured the main bourse by 0.50-0.80 index points each.
