Thai Stock Market Tipped To Extend Losing Streak

The Thai stock market has finished lower in consecutive trading days, surrendering more than 20 points or 1.3 percent along the way. The Stock Exchange of Thailand now sits just above the 1,690-point plateau and it’s likely to open under pressure again on Wednesday.

The global forecast for the Asian markets is negative on geopolitical concerns over escalation of conflict between Russia and Ukraine. The European and U.S. markets were down and the Asian markets are tipped to follow a similar path.

The SET finished slightly lower on Tuesday following losses from the financials and a mixed picture from the energy producers.

For the day, the index dipped 3.20 points or 0.19 percent to finish at 1,691.12 after trading between 1,673.31 and 1,691.62. Volume was 29.178 billion shares worth 93.075 billion baht. There were 1,279 decliners and 558 gainers, with 505 stocks finishing unchanged.

Among the actives, Advanced Info gained 0.88 percent, while Thailand Airport tanked 2.31 percent, Asset World retreated 1.60 percent, Banpu advanced 0.93 percent, Bangkok Bank sank 0.71 percent, Bangkok Dusit Medical added 0.43 percent, Bangkok Expressway declined 1.69 percent, BTS Group surrendered 1.52 percent, Energy Absolute skidded 1.07 percent, Gulf shed 0.49 percent, IRPC plunged 4.06 percent, Kasikornbank dipped 0.30 percent, Krung Thai Bank weakened 0.71 percent, Krung Thai Card slumped 0.77 percent, PTT Oil & Retail stumbled 0.93 percent, PTT perked 0.65 percent, PTT Exploration and Production spiked 1.97 percent, PTT Global Chemical lost 0.45 percent, SCG Packaging slid 0.40 percent, Siam Commercial Bank was down 0.39 percent, Siam Concrete dropped 0.75 percent, TTB Bank sank 0.72 percent and CP All Public, Charoen Pokphand Foods and True Corporation were unchanged.

The lead from Wall Street suggests consolidation as the major averages opened slightly lower on Tuesday but saw losses accelerate as the day progressed, ending firmly in the red.

The Dow plunged 482.57 points or 1.42 percent to finish at 33,596.61, while the NASDAQ tumbled 166.55 points or 1.23 percent to end at 13,381.52 and the S&P 500 dropped 44.11 points or 1.01 percent to close at 4,304.76.

The weakness on Wall Street came after Russian President Vladimir Putin recognized two Ukrainian separatist regions – Donetsk and Luhansk – as sovereign states and sent troops into those territories as “peacekeepers.”

Describing the latest actions by Russia as the beginning of an invasion of Ukraine, U.S. President Joe Biden announced the first tranche of U.S. sanctions on two large Russian financial institutions, VEB and Russia’s military bank, and Russia’s sovereign debt, as well as Russian elites and their family members.

The U.K. also announced a first tranche of sanctions on Russia, targeting five Russian banks and three “very high net worth” individuals.

Oil prices moved up sharply Tuesday on concerns over supplies following Russia’s aggressive move into Ukraine. It is feared that a full-blown conflict in Ukraine could cause major disruption to crude supplies. West Texas Intermediate Crude oil futures for April ended higher by $1.70 or 1.9 percent at $91.91 a barrel.

Closer to home, Thailand will provide January figures for imports, exports and trade balance later today. Imports are expected to rise 22.15 percent on year, slowing from 33.4 percent in December. Exports are called higher by an annual 19.6 percent, down from 24.2 percent in the previous month. The trade deficit is pegged at $0.3 billion following the $0.35 billion shortfall a month earlier.