Investors’ concern over the global economy amid the outbreak of the coronavirus is intensifying as cases in the US, the world’s largest economy, grows exponentially
There are now more than 142,000 confirmed cases in the United States compared to China’s 81,000. The pandemic has now spread to 199 countries and territories.
Most Asian markets opened with losses on Monday morning following the drop in US stock futures. Japan’s Nikkei 225 dropped 3.7 per cent, Hong Kong’s Hang Seng fell 1.9 per cent and China’s Shanghai Composite was also down by 1.5 per cent.
The Stock Exchange of Thailand (SET) fell by 1.6 per cent at the opening from 1099 down to 1081.
Krungsri Securities sees the index in the range of 1050-1075 on Monday as countries continue pumping in money to keep their economies afloat. US’s oil prices crashed below US$20 per barrel to a 17-year low on Sunday and the overall drop will continue to put pressure on the SET as well.
Finansia Syrus Securities expects the SET in range of 1050-1100 on Monday for similar reasons but added that the index has a chance to test the psychological mark of 1000 with a price to earnings ratio of 12 times.