In a report on Wednesday, Asia Plus Securities highlighted that the CME FedWatch Tool indicated a 63% probability of a 50 basis points interest rate reduction by the US Federal Reserve. This scenario could potentially result in a depreciation of the US Dollar against the Thai Baht and attract foreign inflows into Thailand. The anticipated developments may also put pressure on the Monetary Policy Committee (MPC) to consider lowering its policy rates during the October 2024 meeting.
The overall circumstances would benefit the Thai stock market. The market is poised to benefit from recent government initiatives as well. The cabinet’s announcement of the THB 10,000 ‘Handout’ scheme, totaling THB 145 billion and aimed at supporting vulnerable citizens, along with the establishment of an economic stimulation board, are expected to generate positive outcomes for the Thai market.
The Ministry of Finance in Thailand has forecasted a 3% GDP growth for the year 2024.
The analyst anticipates the SET Index to experience tight trading with fluctuations as investors keep an eye on developments following the Federal Reserve meeting. Additionally, the analyst has identified ADVANC, AOT, and AP as its top-pick stocks.
