SET index drops 13.68 points
- Published: 23/08/2013 at 05:00 PM
- Online news:
Thai stocks continued their decline on Friday, shedding 1% on a day when most other Asian markets bounced back on improving global economic indicators.
The Stock Exchange of Thailand Index fell 13.68 points from Thursday to close at 1,338.13, a decrease of 7.4% from the previous Friday's close of 1,445.76.
Turnover was 46 billion baht, with 8.6 billion shares traded.
Foreign investors continue to pull out of emerging markets including Thailand amid signs that the US Federal Reserve will soon end its stimulus. Sentiment on the SET has also been hurt by weakness in the Thai economy, with implications for corporate financial performance for the rest of the year.
The National Economic and Social Development Board cut its 2013 growth forecast on Monday as the country entered a technical recession for the first time since 2009.
After closing below its 2012 closing level for the first time this year, the SET is now down 3.8% since January and down 18.7% from the year-high of 1,643.34 reached in mid-May.
Foreign investors were net sellers on Friday of 547.45 million baht worth of Thai shares and local brokers sold 2.41 billion baht net. Local institutions were net buyers of 2.86 billion baht and individual investors bought 100.78 million.
Foreign investors this month have sold 34.74 billion baht more in Thai shares than they have bought, bringing their net-sale position for the year to 110.8 billion baht.
Other Asian stock markets rebounded on encouraging economic data from China and Europe, but markets elsewhere paused as traders waited for data on US home sales later on Friday.
In early European trading, Britain's FTSE 100 was up 0.2%, Germany's DAX was marginally lower and France's CAC-40 was off 0.5%. Wall Street appeared poised to fall, with Dow Jones industrial futures down 0.2% at 14,917 and S&P 500 futures off 0.1% to 1,652.90.
Markets in Asia responded positively to the HSBC report on Thursday that showed expansion in China's manufacturing in August.
"This should reassure even the most bearish that China has avoided a hard landing for now," said Qinwei Wang of Capital Economics.
Japan's Nikkei 225 index jumped 2.2% to 13,660.55. Australia's S&P/ASX 200 advanced 0.9% to 5,123.40 and South Korea's Kospi added 1.1% to 1,870.16. Hong Kong's Hang Seng reversed early gains to close 0.2% down at to 21,863.51.
In Bangkok, the SET50 index of blue chips ended at 908.97 points, down 10.85 points, with total trade value of 37.58 billion baht. The SETHD index of high-dividend shares lost 4.30 points to 1,107.08, with turnover of 13.98 billion baht. The Market for Alternative Investment was down 4.06 points to 356.70, with transaction value of 506.5 million baht.
The five most active shares by value were Shin Corp (INTUCH), down 3.50 baht to 75.75; KBANK, down 50 satang to 162 baht; TRUE, down 35 satang to 7.70 baht; TMB, up 14 satang to 2.60 baht; and PTTEP, up one baht at 164.
In the currency markets, the baht strengthened on Friday but still had its worst week since December 2006 on speculation that outflows from emerging markets will quicken as the US Federal Reserve prepares to cut monetary stimulus.
Global funds have sold $917 million more in Thai bonds than they bought for the month through Thursday, and net sales of stocks reached $903 million.
The baht was trading late Friday in Bangkok at 31.90/95 to the dollar, compared with 32.04.09 on Thursday, and 31.27/32 a week earlier. The currency lost 2.2% on the week, the most since the period ended Dec 22, 2006.
"Funds are flowing out from emerging markets, weighing on the regional currencies," said Koji Fukaya, CEO of FPG Securities in Tokyo.
"The contrast is becoming clearer between the US, where the economy is recovering, and slowing growth in emerging countries.
Goldman Sachs has cut its three-month forecast for the baht to 33 per dollar from 31.30.
However, Mr Fukaya believes the baht and other currencies may now be oversold.
"A recovery in the world's largest economy means recovery in external demand for emerging nations," he said. "When you think about that, then recent declines probably offer a good opportunity to buy on dips."
In the bond market, the yield on the 3.625% sovereign note due in June 2023 jumped 22 basis points from a week ago to 4.2%, close to the highest since the notes were issued in 2010.
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- Writer: Online Reporters
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