Oil price free fall- $50 per barrel to $30 – causes Thai stocks to plummet


BANGKOK (NNT) – Thai stock index on Monday has fallen by some 90 points, or 6 percent, causing concerns among investors. The Stock Exchange of Thailand (SET) says the fall resulted from the drop in global oil prices, claiming the current situation still does not require special measures.

SET President Pakorn Peetathawatchai commented that the Thai stock index showed a big drop along with other stock markets around the globe, as they are all affected by the drop in energy stocks of 15 percent, following the fall in the global oil price from 50 U.S. dollar per barrel to $30.

This massive change in the oil price has caused a fall in stock prices for natural resources and banking. Along with energy stocks, all stocks in these three categories account for some 50 percent of the overall Thai stock exchanges’ market cap.

The SET president said special measures including a circuit breaker are still not required in the current circumstance, as stock prices have been falling for some time now. He has urged investors to monitor the news closely.

The SET has filed a report with the Bank of Thailand, the Securities and Exchange Commission, and the Ministry of Finance. A joint committee will be established to find short-term measures to help SMEs affected by the current COVID-19 epidemic, as well as long-term restructuring of capital markets, and ways to increase investment opportunities. Conclusions on these measures are expected to be reached soon.