ASEAN KEY DESTINATIONS
SET plunges in tandem with global markets
The index opened in the morning trading session nose-diving by more than 18 points. It then fluctuated and dropped to its lowest level by more than 24 points before regaining and closing at 819,15, down 18.58 or 2.22%, with a trading value of 10.4 billion baht.
Pongpan Apinyakul, director of Kim Eng Securities Plc's Securities Analysis Division, said the Thai stock market had dropped sharply in conjunction with global markets.
In particular, the Dow Jones Industrial Index plunged by 281 points on the night of August 5 and Hong Kong's Hang Seng index plunged more than 500 points in the morning trading session.
In addition, crude oil prices, especially in the US Nymex, declined considerably. It pressed stock prices in the energy sector, which has the biggest market capitalisation, to decrease quite significantly.
However, he projected, the SET index would regain its loss since investors had already absorbed news reports on the US economic woes.
More importantly, the Thai economic fundamentals remain strong, profits earned by listed companies are likely to improve, and Thailand's political situation begins to be more clear.
Meanwhile, the baht had weakened and hovered around 33.83-33.88 to the US dollar in the morning trading session.
The currency depreciation stemmed from mounting concerns that foreign investors would dump stocks in emerging markets and bring the money back to the US.
Concurrently, the investors had kept a watch on comments on economic conditions at the Federal Open Market Committee (FOMC)meeting, which is to take place August 7. It is expected the FOMC would maintain key interest rates unchanged. TNA