Thai Stock Market Roundup on August 31, 2020

A short summary to inform investors of what had happened in the Thai stock market on August 31, 2020.

SET Index closed at 1,310.66 points, decreased 12.65 points or 0.96% with a trading value of 54 billion baht. The analyst stated that the Thai stock market plunged in the afternoon session over the concerns of Thai economic outlook, MSCI rebalancing and the negative sentiment from regional markets after top Chinese banks underperformed.

In the afternoon, the Bank of Thailand has released its July economic outlook, stating that the economy continued to improve over the relaxation of lockdown measures, but investment conditions remained vulnerable.

Meanwhile, MSCI will rebalance its indexes today, raising concerns from investors of a weigh down.

Moreover, Chinese banks reported a loss of billions of dollars in profit due to the rising of bad loans during the coronavirus pandemic. The banks were the frontline to absorb the economic plummet on households and businesses during the pandemic. Five largest Chinese banks recorded at least 10% decline YoY for the first half of 2020 while setting provisions for possible blows in the future.

The analyst expected the market to rebound after the MSCI rebalancing, giving a support level for tomorrow’s session at 1,300 points and a resistance level at 1,320 points.

Foreign Investors divested 6.4 billion baht in Thai stock market, plunging the index by 12.65 points.

BOT showed concerns over lower investment conditions and severed tourism in July.

BAM reported a profit of ฿135M in 2Q as interest income grew 64% amid Covid-19.

STEC signed a ฿1.54Bn bypass-road construction contract in Nong Khai.

EP invested ฿7Bn in 4 Vietnam’s wind farm projects, expecting a COD in 2021.

BGRIM expected to ink Vietnam’s 2,700MW LNG to Power Power Plant deal in early 2021.

– The analyst expected STEC’s recovery in 2021, giving a “BUY” recommendation with a target price at ฿18.00/share.

CWT targeted ฿5Bn of revenue in 2023, shaping “Chai Watana Green Power” to listing in mai.

– Stocks in Focus on August 31, 2020: BGRIM (Maybank Kim Eng TP at ฿56.00/share) and BDMS (Krungsri Securities TP at ฿23.50/share).

Top 10 Most Impact Shares on August 31, 2020