Thai stocks tumbled on Wednesday, with a drop of 1.43% by 3.05pm.
The Stock Exchange of Thailand's main index was at 1,740.02 points, down 25.22 points. Trading volume was 11.27 billion shares, with a value of 59.72 billion baht.
The SET50 index was at 1,149.08 points, down 16.09 points or 1.38%, with a total trade value of 43.52 billion baht.
The MAI index dropped more sharply - 10.02 points or 2.06% - to stand at 475.22 points, with a total transaction value of 916 million baht.
Analysts in part attributed the plunge to Finance Minister Apisak Tantivorawong's comment that there is a too wide a gap between the interest rates commercial banks charge large-scaled customers versus smaller ones, weakening the competitiveness of small businesses. The remark may have led investors into believing the minister was pressuring banks to narrow the spread.
Kasikorn Bank shares fell 11 baht (5.19%) to 201.00 baht, while Bangkok Bank dropped 7.50 baht (3.78%) to 191.00 baht.
There were also concerns over the escalating trade war between the US and China.
The crude oil price continued to slip, while the banking sector was also in negative territory over a possible reduction in deposit interest rates.
“We think investors will continue to bet on domestic and defensive plays, such as the hospital and tourism sectors, at this time, said Jitra Amornthum, head of research at Finnasia Syrus Securities.
She also touted telecommunications, “because the sector that has had no negative news – all the negativity has come from global factors and has no impact on Thai corporate performance.”
Investors should consider accumulating good stocks after the market correction, she added, predicting the support line of the SET Index will be at 1,730 - 1,700 points.
