In the Thai stock market, financial firms, particularly those offering loan services, are poised to benefit significantly from the implementation of the new cash handout policy under the leadership transition in the government.
Paetongtarn Shinawatra has officially assumed the role of Prime Minister of Thailand after the dismissal of Srettha Thavisin due to an ethical misconduct ruling by the court.
Reports indicate that the cash handout initiative will shift from digital transfers to legal tender specifically targeting vulnerable segments of the population.
Unlike the restrictions associated with digital cash disbursements, the revised terms are expected to be more conducive to the effective utilization of the funds, generating optimism among analysts who believe that direct financial assistance will reach those in need.
Anticipating that a considerable portion of eligible individuals will utilize the cash handout to repay loans, financial stocks such as MTC, SAWAD, TIDLOR, SAK, AEONTS, JMT, SINGER, and SGC are projected to reap the benefits of this policy shift.
Additionally, the financial sector is likely to experience a reduction in financial strains, including lower non-performing loans and provisions, which could see a notable decrease.
Further details are anticipated to be disclosed this week as Paetongtarn plans to finalize discussions with coalition partners regarding the composition of her new cabinet. As of now, there has been no official confirmation about the proposed policy amendments.
