SET Index Falls Sharply after Overnight Selloff in Wall Street, Bonds Hit 2-Year High

The Thai stock market made a sharp plunge after surging slightly higher at the opening bell amid negativity in the Asian markets over rising U.S. bond yields.


As of 10:57 local time in Thailand on January 19, 2022, SET Index fell 6.76 points or 0.41% to 1,653.51 points. The stock market opened higher earlier this morning and extended its gain to 7 points before a sudden selloff from investors caused a sharp plunge in the market.


Asia Wealth Securities (AWS) wrote earlier this morning that it expects the negative sentiment to continue for SET Index and move within the range of 1,650-1,680 points after yields on U.S. 2-year and 10-year treasury bonds (bond yield) rose to 1.055% and 1.884% (this morning, 19 Jan), adding weight to the Fed’s tightening monetary policy, which is scheduled for a meeting on 25-26 January. Although AWS believes that the Bank of Thailand’s monetary policy will continue to relax, the securities company expects the MPC to increase interest rates in 1Q23.

Short-term selective investment strategy remains speculative, in line with bond yields and rising crude oil prices in the short-term. AWS chooses BLA, PTTEP, PTT, SPRC, TOP, KBANK and BBL, as well as domestic play stocks that benefit from government economic stimulus measures.


Wall Street closed lower yesterday after a disappointment in Goldman Sachs’ earnings that missed expectations while more bank earnings are up ahead. Dow Jones closed 1.51% lower on Tuesday. S&P 500 fell 1.84% and Nasdaq plunged 2.60%. The share price of Goldman Sachs dropped 6.97% to $354.40 per share yesterday.