SET faces negative sentiment from China on Monday; investors wait for positive results from the cabinet on Tuesday

The Stock Exchange of Thailand (SET) went down heavily on Monday as investors sold to take in profits. 

Phillip Securities (Thailand) said the SET could end the day at 1345 index points, as the index was facing negative sentiment due to reports of a resurgence of coronavirus cases in Beijing.

So far, the SET traded down by 2.86 per cent, down 39.49 points from 1382 at the opening to 1343 as of 3:30 p.m. with a trading value of 60.64 billion baht.

Foreign investors sold 26.14 billion baht and became a net seller of 2 billion baht during the same period of time.

Beijing had reported zero local infections for 56 days before June 11. On Monday, the city reported eight new COVID-19 cases, all linked to a large wholesale market called Xinfadi.  

CGS CIMB Securities Thailand said the market is lacking new positive sentiments as oil prices are also adding more pressure on the market’s energy shares.

Apart from energy, the outflow continues to be strong for petrochemical, banking and tourism.  

If United States’ shares drop heavily Monday night, the next buying target for SET will be when its hits 1250-1300. 

Tuesday could bring new added positive sentiment from the cabinet, specifically in response to the decisions on travel bubble negotiations, they added.