Thai Market Falls 20pts in Morning Trade following a Massive Sell-Off in Banking Stocks

The Stock Exchange of Thailand fell roughly 20 points in the morning trade after suffering a sell-off in big-cap stocks led by the banking sector and DELTA.

As of 11.03 hrs. local time in Thailand, SET Index dropped 20.39 points or 1.24% to 1,621.34 points; the market’s crash was consistent with that of other markets in Asia. 

RHB Securities (Thailand) said that a crash in SET Index this morning was in line with other major stock markets in Asia, due to concerns about the COVID omicron variant outbreak in Europe and the United States, where the daily case count has continued to rise uncontrollably and governments have been forced to reimpose tougher measures to stem the COVID wave. And in certain areas, fresh lockdowns have already been implemented. As a result, the price of oil has also dropped from the anticipation that demand may decline.

Besides that, the effort to impose a tax on securities transactions has created a negative sentiment in the stock market. If this happens, Thailand’s stock market volume will definitely be impacted.

RBH recommends keeping an eye on issues such as Tuesday’s cabinet meeting and measures to boost electric vehicles (EVs), which might make stocks in the retail group and Energy Absolute (SET: EA) worthwhile investments. If the prices of the aforementioned equities fall sharply, now is the time to accumulate. RBH has marked 1,625 points as a support level and 1,645 points as a resistance level.