Bangkok: Thai stocks continued to fall, and the baht weakened, reflecting growing concerns over prolonged conflicts in the Middle East. Analysts recommend holding cash as transportation costs and inflation could be impacted, with the energy sector being the only one to rise against the market trend.

According to Thai News Agency, Mr. Thanapong Charoenwattanakit, Investment Strategist at Yuanta Securities (Thailand) Co., Ltd., reported that the Thai stock index fell 91 points, or 6.27%, within the first hour of trading. The decline is linked to rising oil prices, which could increase domestic production costs and boost inflation, negatively affecting the overall economy. Foreign investors, in particular, contributed to the selling pressure as they shifted to US dollars and gold. The energy sector, however, experienced gains due to the rise in oil prices.

Experts acknowledge the uncertainty surrounding the conflict, noting the difficulty in predicting whether it will end quickly or persist. Investors are advised to hold cash while monitoring the situation closely. The ongoing conflict could have a significant impact on the global economy, affecting inflation rates, commodity costs, and US economic indicators.

Mr. Poon Panichpibul, Money and Capital Market Strategist at Krungthai GLOBAL MARKETS, Krungthai Bank, stated that the Thai baht opened weaker at 31.64 baht per dollar, compared to the previous closing level of 31.45 baht per dollar. He anticipates the exchange rate to fluctuate between 31.50-31.85 baht per dollar, influenced by developments in the US PMI index and the Middle East conflict. The baht has shown volatility, breaking through resistance zones amid fears of escalating tensions that could drive global energy prices higher for an extended period.