Fund outflows continue to persist on the Stock Exchange of Thailand (SET) index as concerns about lower fee income hit the banking sector's earnings and China's cooling economy keep a lid on investment appetite.
The SET closed at 1,627.69 points, down by 15.83 points or 1%, in turnover worth 36.6 billion baht.
Brokerages were net sellers of 1.2 billion baht, with foreign investors and institutional investors selling 760.4 million and 307.9 million worth of shares, respectively. Retail investors were net buyers of 2.3 billion baht.
KTC suffered a sharp sell-off, with its share price down by 30%, while TISCO and BEAUTY dipped by 7.76% and 6.92%, respectively.
The banking industry is expected to announce lower earnings for the second quarter than the first quarter, mostly attributed to the decision to eliminate fees for digital transactions. The move is seen as self-disruption as fintech services pose a threat to the industry's performance outlook.
The sector's second-quarter revenue is projected to fall by 7% as a result of ebbing fee income, said Pornthep Jubandhu, senior vice-president of investment strategy at SCB Securities.
