Southeast Asian stock markets retreated on Thursday as investors cut positions in energy shares after global oil prices tumbled, sending the Thai benchmark to a more than six-week low and the Malaysian index down from the previous day’s rebound.
The Thai SET index traded about 2 per cent lower at 1,527.48, the lowest since October 22. Shares of the country’s top energy firm PTT fell 3 per cent and explorer PTT Exploration and Production dropped 5 per cent to the lowest since May 2009 after oil prices tumbled as much as 5 per cent on Wednesday.
“More downside could be in store for Thai stocks today amid external pressures, further slides in crude oil prices and heavy foreign sell-offs in both equities and futures last Tuesday,’’ strategists at broker Phillip Securities wrote in a report.
The overall performance of listed Thai firms was positive although concerns remained over the outlook of energy companies due to weak oil prices, Stock Exchange of Thailand (SET) President Kesara Manchusree told reporters.
An overnight fall in US stocks broadly weighed on regional sentiment.
US stocks
US stocks lost more than 1 per cent on Wednesday in the S&P 500’s biggest decline since October 13 as another big drop in oil prices hammered energy shares.
Energy shares
Energy shares led among the losers on regional indexes after staging a rebound on the previous trading day.
In Kuala Lumpur, shares of Petronas Dagangan and Petronas Gas each dropped about 4 per cent, with Malaysia’s key stock index edging down 0.5 per cent after a 1.6 per cent rise on Wednesday.
In Singapore, shares of Keppel Corp and Sembcorp Industries reversed the gains made on Wednesday and were among the top percentage underperformers on the key Straits Times Index.
Broker NRA Capital expected more market weakness.
“Though many consider the selling to be overdone, the lack of support and buying interest will likely exaggerate the falls,’’ it said in a report.
The Philippine index fell 1.9 per cent to the lowest since October 20, led down by the shares of casino owner and operator Bloomberry Resorts Corp after a court ruling that allowed its erstwhile operator to sell 921.18 million shares.