Shipping stocks tumbled on Monday, September 20, from a depressed stock market, amid fears that Fed will cut QE and raise interest rates sooner than expected, as well as the possible collapse of Chinese real estate giant Evergrande.
Thoresen Thai Agencies Public Company Limited (TTA)’s share fell ฿1.50/share or 9.74% to ฿13.90/share, with a trading value of 1,543 million baht.
Precious Shipping Public Company Limited (PSL)’s share fell ฿2.00/share or 8.85% to ฿20.60/share, with a trading value of 1,072 million baht.
Regional Container Lines Public Company Limited (RCL)’s share fell ฿4.00/share or 6.93% to ฿53.75/share, with a trading value of 930 million baht.
Prima Marine Public Company Limited (PRM)’s share fell ฿0.20/share or 2.96% to ฿6.55/share, with a trading value of 39 million baht.
Mr. Ekpawin Suntarapichard, investment strategists of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on September 20, 2021, stated that the Thai market received negative sentiment from overseas as Dow Jones Future dropped more than 300 points and Hang Seng Index fell more than 3%, coupled with concerns in the rising corporate tax rate in the U.S.
Besides that, Chinese property developer Evergrande Group is facing its own financial crisis with $300 billion in liabilities and some of them will soon default and will possibly send shockwaves through the Chinese property sector.
According to KTBST Securities, the SET Index was weighed down today by negative factors such as the Fed’s discussion of QE tapering guidelines, which will signal QE tapering, and China Evergrande, which is struggling with declining liquidity and faces the risk of debt default. Moreover, Thailand has raised the ceiling on its public debt-to-GDP ratio to 70% from 60%. This resulted in a sell-off of banking stocks and big-cap stocks, the majority of which are held by foreign investors. As a consequence, the baht suffered a depreciation.