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The Stock Exchange of Thailand (SET) index closed by tumbling over 45 points, down 2.69 per cent, on Monday amid deepening crisis in Ukraine that continues to trigger investors to retreat from the market.
The SET index reached its lowest point of the day at 1,626.70 during the afternoon session. The dip was in line with other regional markets, as the Russian-Ukraine crisis remains unresolved. Last Friday, the SET closed by falling over 24 points.
Most analysts expect the market to still be under pressure on Monday, with the United States and allies mulling to put a ban on oil imports to Russia.
Rakpong Chaisuparaku, an analyst at KGI Securities, said in a research note that the ban “could significantly raise pressure on crude oil demand and supply balance.”
Oil prices have risen over US$125 per barrel this morning, stepping closer to the record high in 2008.
“On the domestic side, soaring oil prices are weighing on purchasing power and could force the Thai government to issue more measures to alleviate the impact,” Rakpong added.
Despite the broader dive, stocks in the energy counter are advancing from the news of soaring oil prices. Sea Oil Plc (SEAOIL) closed by rising more than 11 per cent. Coal miners Banpu Plc (BANPU) and The Lanna Resource Plc (LANNA) also rose over 3 per cent at the closing.
Krungsri Securities’ analysts said energy stocks supported by a spike in oil prices “could trigger an intraday rebound.” “All eyes are now on the third round ceasefire talk scheduled for Monday,” they added.