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Thailand’s equity market tracked a sharp decline in Wall Street on Thursday, as investors fretted over rising global inflation, which hampered earnings of major retailers such as Target, Walmart, and Costco.
In line with regional markets, the Stock Exchange of Thailand (SET) index tumbled by 28 points, or down 1.74 per cent, to 1,592 points at the opening.
Overnight on Wall Street, the United States’ retail titans revealed disappointing quarterly results due to surging fuel and freight costs. This sparked fears and prompted Target shares to plunge by 25 per cent, with Costco shares dipping by 14 per cent.
The Dow Jones Industrial Average ended on Wednesday by falling over 1,100 points, down as much as 3.6 per cent.
Analysts at Krungsri Securities said in a note that the Thai bourse will likely be pressured by the Federal Reserve’s comment that it would continue to hike interest rates to tackle soaring inflation.
“We recommend buying on weakness with a focus on stocks with specific catalysts,” Krungsri analysts said.
Despite an overall market decline, a newly listed firm saw a significant jump on its first trading day. Shares in Function International Plc (FTI), a water treatment system operator, bounced by 72 per cent to 4.30 baht from its initial public offering price of 2.50 baht.
Healthcare operators also shared the gains. Chularat Hospital Plc (CHG) advanced by 2.92 per cent to 3.52 baht, while Ramkhamhaeng Hospital Plc (RAM) rose by 1.62 per cent to 47 baht.