Thailand’s SET Index fell more than 20 points in the afternoon session on Wednesday, as the harsh sell-off in big-cap equities continued in the wake of reports that UK inflation reached a new 40-year high of 9.1% in May.
As of 15.22 hrs. local time in Thailand, the SET Index fell 20.29 points or 1.29% to 1,554.23 points, with a trading value of THB50.021 billion.
Capital Nomura Securities said that an extended loss in the Thai market during the afternoon session was triggered by a brutal sell-off in big-cap stocks, particularly those in the telecommunications, banking, and energy sectors. The further decline follows the report that the UK’s consumer price index (CPI), the most widely recognized measure of inflation, set a fresh 40-year high of 9.1% in May.
This would push the Bank of England and the US Federal Reserve (Fed) to speed their interest rate hikes to combat inflation. Foreign capital outflows and the depreciation of the Thai baht would continue if other central banks followed the world’s two largest economies.
CNS has set up a new support level at 1,550 and a new resistance level at 1,565.