The Thai stock market was unfazed by the partial lockdown proposals on Friday. Investors believe the effects will not be as severe as the full-scale lockdown imposed last year.
The Stock Exchange of Thailand (SET) index rose 10 points when the announcement was made, but then fell back to 1,544 points during the mid-day break.
“Following a sharp market decline yesterday due to rising fears about the Bangkok lockdown, the SET index could stabilize on Friday,” said analysts at KGI Securities.
On Thursday, the SET index plunged by 32.93 points (or 2.09 per cent) when trading closed amid worries about imminent lockdown measures.
Even with the ongoing Covid-19 pandemic and additional restrictions, the analysts noted that downside risks on the market are limited.
The most actively traded stock of the morning session was Kasikornbank (KBANK), which rose 2.24 per cent to 114 baht as of 12.14 am with a transaction value of 2.08 billion baht. KBANK saw a sharp drop of 4.70 per cent on Thursday.
For tactical plays, analysts at SCB Securities recommended that investors buy “selectively” and be “cautious” with an expected range of the SET index around 1,535-1,560 points.