CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Thai equities hit one-month low as fears rise over economy

By Mensholong Lepcha

08:28, 28 June 2021

Thai store worker wearing face mask

Thailand’s benchmark SET 50 Index is set to close lower for an eighth session in a row at a one-month low, following its central bank’s remark about the country’s slow economic recovery.

The central bank said on Monday (28 June) that Thailand’s economy is expected to reach levels seen before the pandemic only in the first quarter of 2023. 

Recovery in Thailand’s cash-cow tourism sector has been curbed by resurgent COVID-19 infections. Health authorities announced on Monday that daily new infections are currently near record-high levels.   

COVID curbs

On Sunday, the government announced fresh restrictions, which include restaurant dine-in bans and shopping mall curfews, in Bangkok and five surrounding provinces.

Checkpoints will also be set up in Thailand’s southernmost provinces of Narathiwat, Pattani, Yala and Songkhla. Travellers must carry a “letter of intent” to leave or enter. 

The Bank of Thailand (BOT) is keeping monetary policy loose in the face of the negative economic outlook. Last week the BOT kept the benchmark one-day repurchase rate at 0.50% for a ninth straight meeting. 

DE40

19,070.40 Price
+0.020% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 22:00 (UTC)
Spread 1.5

HK50

19,788.80 Price
+0.920% 1D Chg, %
Long position overnight fee -0.0222%
Short position overnight fee 0.0003%
Overnight fee time 22:00 (UTC)
Spread 30.0

US30

43,828.00 Price
-0.240% 1D Chg, %
Long position overnight fee -0.0248%
Short position overnight fee 0.0026%
Overnight fee time 22:00 (UTC)
Spread 2.0

US100

21,058.80 Price
-0.070% 1D Chg, %
Long position overnight fee -0.0248%
Short position overnight fee 0.0026%
Overnight fee time 22:00 (UTC)
Spread 1.8

Lower growth

The central bank also scaled-back its growth forecast for 2021 to 1.8% from 3%.

Bank of Thailand governor Sethaput Suthiwartnarueput told Bloomberg TV last week that “recovery will be slow and uneven” with services having been hit a lot harder than manufacturing. 

Thailand is attempting to reverse the hit to its tourism sector by welcoming at Phuket, from Thursday (31 June), fully vaccinated international guests, who do not have to undertake quarantine requirements on arrival. 

Phuket Sandbox

The government hopes the “Phuket Sandbox” will be a stepping stone to a wider opening of Southeast Asia’s second-largest economy to travellers by its peak tourist season, which starts in November. However, the Tourist Authority of Thailand is already downscaling its projected visitor numbers. 

 Trade Bitcoin / Baht - BTC/THB CFD

Read more: Bank of Thailand keeps interest rates at record low

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading