Markets down with investors worried about ramifications of Bangkok Covid-19 wave

The resurgence of local Covid-19 infections is likely to put downward pressures on the market, dragging down tourism and retail stocks as the government attempts to control the outbreak, analysts said on Wednesday.

Market concerns over the increasing number of covid infections in Bangkok could halt economic activities again and delay the country from reopening, an analyst at Krungsri Securities said.

Tourism and retail sectors are the most vulnerable, with the Stock Exchange of Thailand (SET) index plunging 21.76 points or 1.37 per cent at the opening.

Among the biggest losers early in Wednesday’s trading was the Airports of Thailand (AOT), down 2.93 per cent to 66.25 baht as of 11.32 am, and Central Retail Corporation (CRC) down 2.76 per cent to 35.25 baht. 

Bangkok Airways (BA) and Asia Aviation (AAV) also slipped 2.44 per cent to 8 baht and 2.86 per cent to 2.72 baht, respectively.

The Stock Exchange of Thailand (SET) index could remain down heading into the holidays as traders worry about the possible impact of the virus and a nationwide spread, said KGI Securities in an analyst brief.

“In the short-term, those domestic pressures are likely to be a more dominant market factor than the global macro optimism and weaker US dollar,” analysts at KGI said.

According to KGI, the index could drop to 1,550 points for base-case assumption while the worst-case shutdown could push the index further down to around 1,510 points.

The University of Thai Chamber of Commerce earlier cut its prediction on public spending during the holidays down by 10-15 billion baht to 100 billion baht, down from 113 billion baht, which is the lowest figure in nine years.

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