SET Watch: The Thailand Stock Market thread

Visa questions, companies, work permits, employment, insurance, banking and finance, and legal issues.
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

Thai stock market hits record high
Most Southeast Asian stock markets rose on Monday, mirroring gains on Wall Street last week and as expectations of higher corporate earnings buoyed sentiment, with Thailand hitting a record high.

Asian shares ex-Japan crept toward all-time peaks, with brisk economic growth and benign inflation adding to the risk appetite, while US stocks notched their best weekly gains in more than a year on Friday, as technology stocks helped lift major indexes to records.

In Southeast Asia, with earnings season coming around, there is positive expectation for first-quarter earnings, said Joel Ng, an analyst at KGI Securities in Singapore.

Thai shares rose as much as 0.7% to hit a record high, and were on track for a fifth session of gains. Financials and industrial stocks gained, with Kasikornbank PCL up 1.2% and Airports of Thailand PCL climbing 3.1%.

Singapore climbed to its highest in nearly 32 months, driven by financial and industrial stocks. Real estate firm CapitaLand Ltd rose 1.9%, while Jardine Strategic Holdings Ltd gained 0.8%.

The Malaysian index rose to its highest since May 2015, as energy stocks such as Petronas Gas Bhd climbed on firmer global oil prices.

Philippines extended gains into a fourth straight session, led by consumer cyclicals, with SM Investments Corp up 2.2%. Vietnam, however, fell 0.1%, dragged down by consumer staples and energy stocks.

Index heavyweight Petrovietnam Gas Joint Stock Corp fell as much as 1.4%. A widespread crackdown on fraud and mismanagement in the energy and banking sectors has gathered pace in the country, with 22 executives put on trial over losses at the state oil firm on Monday.

https://www.bangkokpost.com/business/ne ... ecord-high
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

Foreigners avoid Thai stocks with fewer tourists squeezing baht
Tourists aren’t the only ones staying away from Thailand since the outbreak of the novel coronavirus in Wuhan. Overseas investors are also pulling out.

International funds withdrew US$562 million from Thai equities last month, the biggest sell-off in the first month of any year since 2011, according to a data compiled by Bloomberg. More withdrawals are likely as overseas investors expect the baht to weaken with tourism from China drying up, according to Asia Plus Securities.

“Fear of the new virus will put more pressure on the currency because earnings from tourism will keep getting battered,” said Therdsak Thaveeteeratham, an analyst at Asia Plus. “Foreign investors are waiting for currency risk to decrease.”

The baht in January had its biggest monthly decline against the dollar in two decades as tourists from China, the biggest market for Thailand, cancelled or suspended travel plans because of the novel coronavirus spreading. The Stock Exchange of Thailand index has tumbled about 9% in dollar terms this year, Asia’s worst performer after China’s gauge, data compiled by Bloomberg show.


https://www.bangkokpost.com/business/18 ... ezing-baht
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Bluesky
Guru
Guru
Posts: 769
Joined: Sat Sep 26, 2015 1:56 pm
Location: Hua Hin, Outback Queensland

Re: SET Watch: The Thailand Stock Market thread

Post by Bluesky »

I don't think the SET will improve anytime soon. Given the strength of the baht and potential currency headwinds, risk of losing out both from the bourse and depreciating currency are valid considerations.There are some other emerging red flags, e.g. Non performing loans.
non performing loans  thailand.png
If anyone does have an interest this link may be helpful (Scroll down to view other indicators)

https://www.ceicdata.com/en/indicator/t ... oans-ratio
'Diplomacy is the art of telling people to go to hell in such a way they ask for directions'. -Winston Churchill-
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

Outbreak batters tourism-related equities
Tourism-related equities have become the second worst performer in the Stock Exchange of Thailand (SET) index after sliding by more than 14% year-to-date, with shattered first-quarter earnings projected as Chinese tourist arrivals plummet following the novel coronavirus outbreak.

Year-to-date share prices of all Thai equities clustered in the tourism segment, where most are operators of major hotel chains in Thailand, have been in the red since trading began on Jan 2.

The share price of S Hotels and Resorts Plc, a holding company that manages hotels and resorts in key tourist destinations, plunged the most among hospitality peers, down by 33.5% year-to-date as of Feb 4, according to SETSMART.

The Erawan Group Plc (ERW), the operator of luxury hotels such as Grand Hyatt Erawan Bangkok and JW Marriott Bangkok, also saw a 24.4% dip in share price, while Central Plaza Hotel Plc (CENTEL) suffered a 12% decline.

The virus pandemic is the latest string of bad news thwarting optimism for tourism-related SET-listed stocks as fundamentals were previously hampered by Thailand's economic slowdown, the baht appreciation and fierce competition in the hospitality sector.


https://www.bangkokpost.com/business/18 ... d-equities
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

Equity sell-off continues amid global contagion fear
Asian stocks fell across the board amid rising cases of the Covid-19 outbreak outside of China, with the Stock Exchange of Thailand (SET) index among the casualties of deteriorating confidence.

The SET index fell by 36.25 points or -2.42% to close at 1,458.84 points when the morning trade session ended, in turnover worth 35 billion baht.

Foreign investors were the sole net sellers of 2.8 billion baht worth of shares. Foreign equity outflows in Thailand totalled 32.8 billion baht year-to-date.

Investor sentiment is being knocked after South Korea saw a 20-fold increase in virus cases in five days and Italy cancelled some public events after coronavirus infections rose to 140, Bloomberg reported.

“Increasing cases of Covid-19 infection outside of China are the main reason pressuring stock markets worldwide in the shor-term,” said Somchai Amornthum, executive vice-president of strategic asset allocation at Krungthai Asset Management.

“If the situation worsens over the next two weeks, the equity sell-off momentum could amplify.”

https://www.bangkokpost.com/business/18 ... agion-fear
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Bluesky
Guru
Guru
Posts: 769
Joined: Sat Sep 26, 2015 1:56 pm
Location: Hua Hin, Outback Queensland

Re: SET Watch: The Thailand Stock Market thread

Post by Bluesky »

Looking back over previous virus outbreaks markets have generally recovered fairly quickly. Whilst past events are indicative there is no guarantee that this will be the outcome in this instance.





Screen Shot 2020-02-24 at 7.32.09 PM.png
Screen Shot 2020-02-24 at 7.32.09 PM.png (199.25 KiB) Viewed 1460 times


There was a flight to safety in the Australian Bourse today (ASX) particularly into gold derivatives and ETF's as hedge against both a declining currency (AUD) and local stocks.

As for the SET it will be interesting to watch its performance over coming weeks and how local traders will deal with it
'Diplomacy is the art of telling people to go to hell in such a way they ask for directions'. -Winston Churchill-
Bluesky
Guru
Guru
Posts: 769
Joined: Sat Sep 26, 2015 1:56 pm
Location: Hua Hin, Outback Queensland

Re: SET Watch: The Thailand Stock Market thread

Post by Bluesky »

Buksi, current volatility does bring to mind another memorable quote from Hunter S Thompson; "Buy the ticket, take the ride."
'Diplomacy is the art of telling people to go to hell in such a way they ask for directions'. -Winston Churchill-
User avatar
Spitfire
Addict
Addict
Posts: 5248
Joined: Thu Apr 10, 2008 1:17 pm
Location: Thailand

Re: SET Watch: The Thailand Stock Market thread

Post by Spitfire »

Looks like the EU stock markets fell like about 4% today so the SET is only going to go in one direction in the short term. This is another reason, other than the tourism factor, why being economical with the truth is good for them. Investors (especially foreign ones) in a market like here are a herd of sensitive hair-trigger cowards when it comes to money and any reason to bail to safer markets will happen if negative news spreads here ...hence the tight lips on everything even if it means ponying up the safety of their citizens.
Resolve dissolves in alcohol
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

Indeedy - liquidated a lot of my mutuals recently, Thailand has been in 'bubble status' for the past couple of years with overvalued currency, surging stocks, climbing core consumer prices, and banks massively over lending. It all has to come crashing down at some stage and Corona could be the kick that starts the avalanche which includes an already battered tourism industry, plunging exports, glut of unsold properties, sinking GDP growth rate, and increasing political tensions. Time to get off this ride IMO.

SET worst-hit bourse in region
The Stock Exchange of Thailand (SET) index suffered the biggest drop among Asian bourses on Monday as confidence was hampered by rising cases of the Covid-19 outbreak outside of China, with risk-averse sentiment sending gold prices to a seven-year high.

The SET index fell by 59.53 points or -4% to close at 1,435.56 points in turnover worth 76.4 billion baht.

Institutional investors were net sellers of 4.2 billion baht, while foreign investors sold 1.7 billion and brokerage firms offloaded 862 million worth of shares.

https://www.bangkokpost.com/business/18 ... -in-region
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Bluesky
Guru
Guru
Posts: 769
Joined: Sat Sep 26, 2015 1:56 pm
Location: Hua Hin, Outback Queensland

Re: SET Watch: The Thailand Stock Market thread

Post by Bluesky »

It is certainly a tug of war on the currency at the moment with the upper echelons wanting to keep the baht strong for ease of servicing offshore borrowings whilst the tourist and export related industries would benefit from a weaker Baht.
There was a push several years ago to attract people into buying property, albeit their principal residence or an investment property. Introductory offers of low interest rates for the first few years of the mortgage with a reset after a given time period, effectively reducing household disposable income. With the risk bias for both the currency and the bourse increasing to the downside investment here seems to be very much "risk off"
'Diplomacy is the art of telling people to go to hell in such a way they ask for directions'. -Winston Churchill-
Bluesky
Guru
Guru
Posts: 769
Joined: Sat Sep 26, 2015 1:56 pm
Location: Hua Hin, Outback Queensland

Re: SET Watch: The Thailand Stock Market thread

Post by Bluesky »

Looks to be a bumpy ride again on the SET today. S&P 500 down 3.02% with VIX (CBOE volatility index or fear index) hitting its highest point since Dec 18. As a point of interest a US options trader at the beginning of January took out a USD $4 million futures contract on a volatility spike which would now put him very much "in the money" on that trade.
'Diplomacy is the art of telling people to go to hell in such a way they ask for directions'. -Winston Churchill-
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

Virus panic pushes SET off a ledge
Thailand's benchmark equity index tumbled to its biggest one-day loss since 2014, plunging below 1,400 points as rising local coronavirus infections shattered already fragile investment sentiment.

The Thai bourse was the biggest loser in Asia-Pacific for the second time in three days.

The Stock Exchange of Thailand (SET) index plummeted 72.69 points or -5.1% to close at 1,366.41 in trade worth 93.2 billion baht.

https://www.bangkokpost.com/business/18 ... ff-a-ledge
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

SET down almost 4%
Thai shares fell almost 4% on Friday morning, tracking the biggest single-day point drop in Dow Jones Industrial Average history overnight on mounting concerns over the economic impact of the spread of Covid-19 disease.

The benchmark SET index slid 3.95% to 1,340.17 points with heavy turnover of 25 billion baht in the first hour of trading.

Therdsak Thaveethiratham, senior executive vice-president at Asia Plus Securities, investors took their cue from Wall Street's sharp fall overnight.

"A rebound should be seen in the afternoon trading session following panic selling in recent trading sessions," he said.

Thai stocks have plunged more than 10% this month and around 16% since the beginning of the year.

https://www.bangkokpost.com/business/18 ... -almost-4-
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Bluesky
Guru
Guru
Posts: 769
Joined: Sat Sep 26, 2015 1:56 pm
Location: Hua Hin, Outback Queensland

Re: SET Watch: The Thailand Stock Market thread

Post by Bluesky »

Thailand Now Has the World’s Worst Stock Market
By Anuchit Nguyen
February 27, 2020, 10:01 AM GMT+7

Rising coronavirus cases in Thailand dimmed the outlook for a quick rebound in tourism, sending the nation’s equities benchmark to rank as the world’s worst performer.

Thailand’s SET Index’s 5.1% slump on Wednesday, most in six years, came after the government said confirmed cases of the virus rose by three to 40, fueling fears of a wider spread. The benchmark gauge’s 14% decline this year, the most among the world’s key equity indexes, has also plunged it into a bear market from a recent high.

The virus outbreak hit tourism-reliant Thailand particularly hard because Chinese tourists, its biggest source of foreign visitors, have all but vanished. Income from tourism, accounting for about fifth of the economy, tumbled last month. That’s exacerbated the effects of a severe drought, a delay in the government’s budget and an export slump in Southeast Asia’s second-biggest economy.

“Fundamentals and valuations are irrelevant now as the market is overwhelmed by fear,” said Namchai Techaratanawiroj, the head of research at LH Securities Co. in Bangkok. “Tourism is a key economic driver and Chinese tourists are the big spenders. There is still no end of this outbreak in sight.”
Other Southeast Asian markets have also been battered, with the Philippine Stock Exchange Index’s 11% slide year-to-date and the Jakarta Composite Index’s 10% putting them in the ranks of the world’s worst performing major equity markets in 2020, while Malaysia’s KLCI Index has tumbled out of a 12-year long bull run.

Overseas investors have pulled $1.18 billion from Thai equities this year, adding to an $11 billion withdrawal in the previous three years, according to data compiled by Bloomberg. Investors should hold onto their cash and be in “no rush” to buy equities during the ongoing coronavirus crisis, BBL Asset Management Co., which oversees about $29 billion of assets, said this week.

— With assistance by Lee J Miller

https://www.bloomberg.com/news/articles ... sm-smashed
'Diplomacy is the art of telling people to go to hell in such a way they ask for directions'. -Winston Churchill-
User avatar
buksida
Moderator
Moderator
Posts: 22472
Joined: Tue Dec 31, 2002 12:25 pm
Location: south of sanity

Re: SET Watch: The Thailand Stock Market thread

Post by buksida »

SET down 82.80 points at opening
Thai stocks opened down 7.35% at the start of trade this morning.

The Stock Exchange of Thailand's main index opened at 1,044.44 points, down 82.80 points from Friday's close. The trade value was 4.06 billion baht with 479 million shares traded.

The SET50 index opened at 692.47 points, down 63.64 points or 8.42%, with a total trade value of 2.88 billion baht.

The MAI index went down 8.20 points or 3.62% to stand at 218.16 points with total transaction value of 34 million baht.


https://www.bangkokpost.com/business/18 ... at-opening
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Post Reply