– 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.