Thai Bank Stocks Slump amid Lockdown Fears

The Banking Index (BANK) fell 11.54 points or 3.38% to 329.39 points in the morning session on Thursday, July 8, 2021, led by TMBThanachart (TTB). The share price plunged ฿0.06/share or 5.56% to ฿1.02/share, with a trading value of 971 million baht.

Followed by Kiatnakin Phatra Bank (KKP), the share price plunged ฿2.25/share or 4.05% to ฿53.25/share, with a trading value of 234 million baht.

The share price of Bank of Ayudhya (BAY) plunged ฿1.25/share or 4.03% to ฿29.75/share, with a trading value of 21 million baht.

The share price of Kasikornbank (KBANK) plunged ฿4.50/share or 3.85% to ฿112.50/share, with a trading value of 2,925 million baht.

The share price of CIMB Thai Bank (CIMBT) plunged ฿0.03/share or 3.61% to ฿0.08/share, with a trading value of 1 million baht.

The share price of Bangkok Bank (BBL) plunged ฿3.50/share or 3.24% to ฿104.50/share, with a trading value of 1,244 million baht.

Source: The Stock Exchange of Thailand 

UOB Kay Hian Securities (Thailand) said that Thai banking stocks tumbled this morning, possibly as a result of negative sentiment fueled by fears that Thailand may face a lockdown if the Covid-19 outbreak situation does not improve. Today, the number of Covid-19 cases exceeds 7,000, prompting concerns about the bank’s second-half performance (2H21).

However, it is still healthy in terms of banking bases, as seen by the operating performance in 2Q21. Banks are projected to report positive earnings in the mid- to long-term, as a result of the vaccination campaign and the return of foreign tourists. Thus, UOB Kay Hian recommends “Buy on Weak” and hold for six months. Bangkok Bank (BBL), Kasikornbank (KBANK), TISCO Financial Group (TISCO), and Kiatnakin Phatra Bank (KKP) are among the Top Picks.