The Thai stock market has been on a downward trend, closing lower for seven consecutive sessions and shedding nearly 45 points, or 3.1%. The Stock Exchange of Thailand is currently just below the 1,360-point mark and is expected to continue this trend on Wednesday.
This prediction aligns with the global forecast for Asian markets, which indicates further consolidation due to concerns about interest rates. While European markets have seen mixed results, U.S. bourses have taken a significant hit, leading to expectations that Asian markets will also open lower.
On Tuesday, the SET concluded slightly lower due to losses across the food, finance, industrial, property, resource and technology sectors. The index fell 3.33 points or 0.24%, closing at 1,359.26 after ranging between 1,350.98 and 1,362.46. Despite a trading volume of 18.730 billion shares worth 39.748 billion baht, decliners outnumbered gainers 291 to 192, with 176 stocks seeing no change.
Notable shifts included Advanced Info falling 0.96% and Thailand Airport dropping 0.77%. Other significant changes included Banpu and Siam Concrete both plummeting 1.85%, while BTS Group fell 1.78%. However, there were some improvements, such as Bangkok Dusit Medical and Bangkok Expressway, which increased by 1.80% and 1.86% respectively.
Wall Street's influence was strongly negative, with major averages consistently performing low throughout Tuesday and closing near their daily lows. The Dow fell by 404.64 points or 1.04%; the NASDAQ dropped 267.92 points or 1.65%, and the S&P 500 sank 52.30 points or 1.02%.
Market weaknesses can be attributed to traders capitalizing on recent market strength, which seen the S&P 500 and the NASDAQ reach record closing highs last week. The uncertainty surrounding interest rates ahead of Federal Reserve Chair Jerome Powell's congressional testimony has also had a significant impact.
On the economic front, the U.S. service sector growth has slowed in February, more than expected, as reported by the Institute for Supply Management. Additionally, The Commerce Department recorded a decrease in new orders for U.S. manufactured goods in January.
Finally, crude oil futures dropped for the second straight session due to concerns over demand, with West Texas Intermediate Crude oil futures for April closing down at $0.59, or $78.15 per barrel.
