SET Extends Losses amid Mounting Concerns over Rate Hike

The SET Index plunged further in the afternoon session amid mounting concerns of a rapid Fed rate hike and the weak baht, which continue to weigh on investors sentiment.

As of 15.25 hrs. local time in Thailand, the SET Index fell 19.54 points, or 1.20% to 1,610.04 points, with a trading value of THB49,672 million.

According to Asia Plus Securities, the Thai stock market is currently facing fund outflow and a correction. During the first week of May, foreigners were net sellers every day for a total of THB2.5 billion and opened 28,485 net short SET50 Futures contracts (29,104 net short contracts last Friday).

Inflation is soaring due to the Russia-Ukraine war, sanctions against Russia, and China’s Zero-COVID policies. In the meantime, Thailand’s energy costs are increasing as a result of the expiration of control measures, therefore the prices of other goods and services are also rising. Consequently, the MPC may consider an interest rate increase. Amidst volatile markets, ASPS selected AOT, BLA, and MINT as Top Pick stock.