Thai Banking Sector Plunges Heavily as Concerns Rise over More Provisions in 2Q

Thai Banking Sector Plunges Heavily as Concerns Rise over More Provisions in 2Q21.

The banking sector edged lower on Friday, April 16, 2021, as the rising coronavirus cases weighed on investors’ sentiment over asset quality, affected by the higher provision.

 

As of 11:00 local time in Thailand, CIMBT dropped 5.88% to ฿0.80share.

TCAP fell 2.04% to ฿36.00/share.

SCB plunged 1.88% to ฿104.50/share.

KBANK dipped 2.17% to ฿135.50/share.

BBL slipped 1.22% to ฿121.50/share.

KKP decreased 2.09% to ฿58.50/share.

LHFG fell 1.74% to ฿1.13/share.

TISCO slipped 0.76% to ฿97.75/share.

TMB plunged 2.52% to ฿1.16/share.

KTB was flat at ฿11.40/share.

BAY rose 4.93% to ฿37.25/share.

 

Prior to the third outbreak in Thailand, the banking sector was expected to show a significant recovery from the plummet in 2020 after each bank had set higher provisions to combat coronavirus impact.

During the first quarter of 2021, the Thai economy and activities showed improvement in recovery from the pandemic a year prior and the ability to subdue the second outbreak without damaging the Thai economy much. However, the recent third outbreak with a shocking rise in new cases might have caused concerns to the banking sector for more provisions in 2Q21.

 

Meanwhile, BAY was the only winning in the banking sector as the analyst stated that the rise could be due to the anticipation of the upcoming IPO of BAY’s subsidiary “Ngern Tid Lor”.