Bank Sell-Off Pushes Thailand’s SET to Fall More than 10 Points

Early trading on Friday saw a drop of over 10 points in Thailand’s benchmark SET Index as investors dumped banking and finance stocks following disappointing earnings reports from the country’s leading banks.

At 11.53 AM (Thai Time), the SET Index had fallen 12.62 points, or 0.75%, to 1,675.86 with a trading value of THB39.577 billion.

According to RHB Securities (Thailand), over 10 points were wiped off Thailand’s SET Index on Friday morning, driven by a selloff in major banks such as Kasikorn Bank (KBANK) and Bangkok Bank (BBL) after they reported weak operating results for the fourth quarter of 2022. And that contributed to a pessimistic sentiment on financial sector stocks.

There is still pressure from rising oil prices that is anticipated to force inflation to increase, and the prospect for the US Federal Reserve to further hike interest rates, so the analyst recommends investors avoid financing stocks until they release the earnings data.