Thai shares rebounded on Wednesday, following a near 50-point drop the day before, as investors bet that the worst of the global fallout from the American banking sector has passed and the latest U.S. inflation data met expectations at 6% YoY.
As of 10.31 A.M. (Thai time), the SET Index rose 30.64 points, or 2.01%, to 1,554.53. Volume was 5,142 million shares worth THB19 billion.
The SET Index in Thailand finished Tuesday at 1,523.89, down 49.18 points, or 3.13%, with a total trading value of THB103 billion. In the last two trading days, the index has dropped sharply, losing about 80 points. The analyst stated that the Thai stock market plunged sharply from the selloff of foreign investors in concerns of the domino effect from SVB and the U.S. inflation data that could result in Fed hiking rates if prices accelerated.
According to Finansia Syrus Securities, a rebound in the Thai market was followed a relief rally on Wall Street and other regional markets, noting that investors rushed back into stocks as fears about contagion in the banking sector following the collapse of Silicon Valley Bank (SVB) subsided.
The SET is expected to swing within 1,520-1,560.