Bangkok: DELTA-AOT-GDP pressured Thai stocks to fall 35 points this morning. Analysts said that waiting for government policy must increase economic stimulus measures to create long-term confidence.
According to Thai News Agency, the Stock Exchange of Thailand revealed that the Stock Exchange of Thailand Index (SET Index) opened this morning down 31.96 points or 2.51%, dropping from last Friday to 1,240.14 points. The main reason was the decrease in the share price of DELTA (Delta Electronics (Thailand) PCL) following news of lower-than-expected earnings and the decrease in AOT (Airports of Thailand PCL) share price due to news of a concession contract. However, additional clarification was provided by the company this morning. At 10.01 a.m., the SET Index was at 1,237.10 points, down 35.00 points (-2.75%), and by 10.28 a.m., the index was at 1,248.57 points, down 1.85% or 23.53 points.
Mr. Pichai Lertsupongkij, Managing Director of Securities Business at Innovest X Securities, highlighted that besides the issues with AOT and DELTA share prices, the announcement by the National Economic and Social Development Board that GDP in Q4/67 grew by 3.2%, lower than the market's forecast of 3.7-4.0%, also impacted the situation. This resulted in GDP growth in 67 being only +2.5%, lower than the previous forecast of +2.7%. The board also revised down the GDP forecast for 68 to grow by +2.8% from an earlier estimate of +3.0%.
Mr. Pichai emphasized that lower-than-expected GDP growth necessitates more government stimulus measures to build confidence. He stressed that it is not merely about injecting funds into the system but finding measures to create long-term economic growth and restore confidence. He advocated for promoting and attracting more investment in the real sector.
He further noted that both the lower-than-expected Q4/67 GDP and the performance of AOT and DELTA stocks weighed on the market, causing stocks to fall below the previous lowest point this year of 1,252 points. The price of DELTA, which fell by 1 baht/share, also caused the stocks to drop by 1 point. The DELTA issue is concerning due to decreased global EV sales, the popularity of DEEP SEEK, and the impact of the minimum corporate income tax rate (GMT) of 15%. Despite the low stock index, Mr. Pichai sees an opportunity to accumulate dividend stocks in the SET.
UOB Kay Hian Securities noted that while GDP in Q4/67 grew, the momentum was weaker than expected, posing a risk of downward revision of profit estimates for financial institutions, particularly commercial banks, the finance group, and the entertainment group, where advertising budgets are related to GDP. These risk factors have been highlighted as warnings with a strategic recommendation to seek opportunities to sell and profit in the commercial bank group over the past week.
Mr. Weerawat Wirojpoka, Senior Director of Securities Analysis at FSS International Investment Advisory Securities (SET) Co., Ltd., mentioned that Thai stocks fell sharply due to pressure from DELTA stocks, which dropped to around 33.25 baht (-29.42%) from specific factors such as lower-than-expected Q4/67 results, dragging down the SET index by around 30 points. Continued selling pressure on AOT stocks from last Friday further pressured the index, while investors shifted investments to stocks in the GULF, ADVANC, and PTT groups.