SET Index Plunges 28pts in Concerns over Fund Outflow and Covid-19 Resurgence

SET Index plunged 28pts in the morning session on May 5, 2021, in concerns of fund outflow and the resurgence of the coronavirus.

The Thai stock market plunged 28.12 points or 1.78% to 1,555.01 points with a trading value of 73.5 billion baht at the closing of the morning session on May 5, 2021.

 

Finansia Syrus Securities stated that the plummet in SET Index was partly due to a two-day close in which stocks in Asia were weaken at the time, coupled with the comment from the U.S. Treasury Secretary Janet Yellen on Tuesday, saying that interest rates may have to increase to prevent the U.S. economy from overheating.

Meanwhile, the U.S. President Joe Biden planned to invest in a mega project on the infrastructure that could accelerate inflation rate, resulting in a stronger greenback and an outflow from the Asia market.

The analyst stated that  the banking sector pressured the market in today’s session due to concerns over the resurgence of the coronavirus outbreak in Thailand that the daily new cases reached 2,000 again today.

 

Maybank Kim Eng stated that Thailand remained pressured by COVID-19 as daily confirmed cases have increased and new clusters have been found such as Klong Toey community, Bon Kai, etc., resulting in the worrisome situation of COVID-19 in Thailand. This may pressure the investment sentiment in the short term. However, amid such stressful factors, it encourages the government sector to accelerate further stimulus measures. Today there will be additional measures to restore the economy.

Meanwhile, the Monetary Policy Committee (MPC) meeting today is expected to remain low on interest rates. Maybank recommended investors to keep an eye on the MPC’s statement on the view of the Thai economy. In summary, with all of the factors that are at risk.