Thai Stocks Retreat From 13-Year High, Drop Most in Asia, as Baht Weakens - Bloomberg
Thailand’s benchmark stock index dropped the most in Asia, retreating from the highest in more than 13 years, as the nation’s currency declined, triggering concern foreign investors’ gains will be trimmed.
The SET Index tumbled 15.65, or 1.7 percent, to 921.39 at the 4:30 p.m. close, the biggest drop since May 25 and the worst performer in Asia. The gauge yesterday reached its highest level since Nov. 28, 1996.
“The baht weakened today, prompting overseas investors to be more cautious in buying more Thai stocks,” said Sukit Udomsirikul, an investment strategist at SCB Securities Co. “Putting money into the Thai market is a way to bet on the baht’s strength. Thai equities have also reached a level that makes it tempting for investors to take profits now.”
The baht halted a four-day rally on concern the central bank will intervene to check strength in a currency whose gains have outpaced that of its regional peers. The baht has advanced 3.6 percent in the past month, the best performance among Asia’s most-traded currencies.
The baht fell 0.1 percent to 30.79 per dollar as of 4:59 p.m. in Bangkok, according to data compiled by Bloomberg. It earlier touched 30.72, matching yesterday’s 13-year high.
Overseas funds, which were net sellers of Thai shares before the Bank of Thailand said on July 23 the economy would grow at its fastest clip in 15 years, have poured about $1 billion into the nation since then. Finance Minister Korn Chatikavanij said yesterday the central bank is doing an “appropriate job of taking care” of the baht.
Siam Cement, Thai Air
Siam Cement Pcl slid 4.3 percent today after the company’s president said the baht’s recent strength may hurt earnings. Thai Airways International Pcl dropped 3.3 percent on expectation the carrier will sell new shares at a discount to the market price.
Siam Cement, the nation’s third-biggest publicly traded company, fell 4.3 percent to 312 baht, the most since May 24. Net income in the third quarter may be reduced by the strength of baht, President Kan Trakulhoon said yesterday.
Thai Airways, the country’s largest carrier, dropped 3.3 percent to 36.25 baht, a one-month low. The carrier, seeking about 15 billion baht in a rights offer, plans to sell shares at 32 baht to 34 baht apiece, said a person with direct knowledge of the matter.
Overseas investors sold 1.81 billion baht more of Thai stocks than they bought today, according to data from the Stock Exchange of Thailand’s website.
To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net
The SET Index tumbled 15.65, or 1.7 percent, to 921.39 at the 4:30 p.m. close, the biggest drop since May 25 and the worst performer in Asia. The gauge yesterday reached its highest level since Nov. 28, 1996.
“The baht weakened today, prompting overseas investors to be more cautious in buying more Thai stocks,” said Sukit Udomsirikul, an investment strategist at SCB Securities Co. “Putting money into the Thai market is a way to bet on the baht’s strength. Thai equities have also reached a level that makes it tempting for investors to take profits now.”
The baht halted a four-day rally on concern the central bank will intervene to check strength in a currency whose gains have outpaced that of its regional peers. The baht has advanced 3.6 percent in the past month, the best performance among Asia’s most-traded currencies.
The baht fell 0.1 percent to 30.79 per dollar as of 4:59 p.m. in Bangkok, according to data compiled by Bloomberg. It earlier touched 30.72, matching yesterday’s 13-year high.
Overseas funds, which were net sellers of Thai shares before the Bank of Thailand said on July 23 the economy would grow at its fastest clip in 15 years, have poured about $1 billion into the nation since then. Finance Minister Korn Chatikavanij said yesterday the central bank is doing an “appropriate job of taking care” of the baht.
Siam Cement, Thai Air
Siam Cement Pcl slid 4.3 percent today after the company’s president said the baht’s recent strength may hurt earnings. Thai Airways International Pcl dropped 3.3 percent on expectation the carrier will sell new shares at a discount to the market price.
Siam Cement, the nation’s third-biggest publicly traded company, fell 4.3 percent to 312 baht, the most since May 24. Net income in the third quarter may be reduced by the strength of baht, President Kan Trakulhoon said yesterday.
Thai Airways, the country’s largest carrier, dropped 3.3 percent to 36.25 baht, a one-month low. The carrier, seeking about 15 billion baht in a rights offer, plans to sell shares at 32 baht to 34 baht apiece, said a person with direct knowledge of the matter.
Overseas investors sold 1.81 billion baht more of Thai stocks than they bought today, according to data from the Stock Exchange of Thailand’s website.
To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net
