Thailand’s SET Index closed at 1,337.83 points, increased 9.71 points or 0.73% with a trading value of 41.29 billion baht. The analyst stated that the Thai stock market performed better than the regional markets, following easing political uncertainties in the country with expectations that the government would deploy stimulus measures and quickly spur the sluggish economy. Meanwhile, the Monetary Policy Committee voted 6 to 1 to maintain the policy rate at 2.50 percent, in line with market expectations.
The analyst expected the market to potentially extend gains tomorrow.
Fitch Ratings emphasized the significance of the swift approval of Thailand’s new Prime Minister, Paetongtarn Shinawatra, by the Thai parliament, a move that garnered royal endorsement on 18 August.
The dismissal of the previous Prime Minister, Srettha Thavisin, by the Constitutional Court due to ethics violations in a cabinet appointment, and the subsequent dissolution of the Move Forward party – which had secured the most seats in the 2023 election – underscore the ongoing political uncertainty in the country.
More than half of the economists surveyed in a Reuters poll predict that the Bank of Japan (BOJ) will increase interest rates once again by the end of the current year, contrasting with global peers like the U.S. Federal Reserve who opted for interest rate reductions.
The survey, conducted from August 13 to 19, indicated that 57% of the economists surveyed, totaling 31 out of 54 respondents, anticipate a rise in borrowing costs by the BOJ by the conclusion of the year. The median forecast for the year-end interest rate stands at 0.50%, representing a 25 basis points increase.
