Commodities, Emerging Markets

Thailand’s Stock Index Gets Crushed Most Since Oct 2008 Amid Oil Plunge

Thai OilThailand’s national stock index, the SET Index, has plunged the most since October 2008 as energy companies among the index have fallen off a cliff amid the ongoing plunge in oil prices.

The SET Index, Thailand’s benchmark stock index, fell as much as 9.2% during intraday trade, before later recovering losses to around 5% as of 3:40pm Bangkok time.

Thailand’s benchmark index is poised to fall for a fifth straight day amid market instability as the oil markets weigh heavy on emerging markets, particularly on EM (emerging market) oil export nations.

Thailand’s PTT Exploration and Production company (PTTEP) has been hit among one of the hardest recently amid the plunge in oil prices as the stock fell for the seventh straight day.

Thailand’s biggest energy company, PTT Pcl (PTT), saw its stock fall over 7% today.

Both companies combine to weigh around 10% of Thailand’s SET Index.

The chief of the Thai bourse said earlier today that no measures were needed to shore up stocks and that investors should not panic.

“We will need to monitor the market closely, but I don’t think we need any measures yet,” Kesara Manchusree, president of the Stock Exchange of Thailand (SET), told reporters in Bangkok.

“I believe most companies will benefit from lower oil prices. This should also help the economy to grow without inflationary pressure next year,” he said.

On Sunday, the Energy Minister of the UAE said that OPEC will continue to stand by its decision not to cut oil output, even if the price of oil should fall to as low as $40 per barrel.

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