Bangkok: Thai stocks experienced a significant downturn, with the Stock Exchange of Thailand (SET Index) dropping to 1,254.83 points, marking a decrease of 1.36% or 17.27 points. The trading value was recorded at 43,115.49 million baht, and during the day, the index hit a low of 1,236.80 points, a decline of 35.30 points.
According to Thai News Agency, the morning session saw the SET Index open down by 31.96 points or 2.51%, falling from last Friday's close to 1,240.14 points. This decline was primarily attributed to a significant drop in DELTA shares following reports of lower-than-expected earnings and a decrease in AOT shares due to concerns over a concession contract. However, the company sought to provide further clarity on the matter in the morning.
Mr. Apichat Phubanjerdkul, CISA, Senior Director of Strategic Analysis at TISCO Securities, explained that the Thai stock market experienced a sharp decline, falling below the crucial 1,250-point support level. This was largely due to the pressure from DELTA share prices, which plummeted in reaction to disappointing Q4/67 results and an uncertain future outlook. Additionally, the continued decline of AOT shares from Friday exacerbated the situation, leading to a more than 2% adjustment in Thai stocks, contrary to regional market trends.
Mr. Wathan Jitsomnuk, Director of Strategy Analysis at Phatra Securities, commented that the downward adjustment in the Thai stock market was significantly influenced by DELTA alone, impacting the index by as much as 26 points. The main cause was identified as the company's Q4/2024 performance, which was 60% below analysts' expectations in terms of net profit. Besides the disappointing profit figures, the situation was compounded by the relatively high valuation of DELTA shares, trading at a PE ratio of 65 times, and further impact from AOT, which reported liquidity problems among trade debtors. This situation could potentially lead to the need for debt provisions, thereby putting pressure on future profits and reflecting reduced consumer spending at the airport.