Thailand’s SET Index closed at 1,443.31 points, decreased 2.99 points or 0.21% with a trading value of 50.41 billion baht. The analyst stated that the Thai stock market traded with volatility, partly attributed to the MSCI Rebalance taking effect at the closing of today’s trading session, resulting in selling pressure, particularly impacting SCGP, along with a selloff of DELTA.
The analyst expected the Thai market to trade sideways within the range tomorrow, while investors kept their eyes on 3Q24 GDP figures and Personal Consumption Expenditures Price Index (PCE) for October from the US. These key indicators are expected to influence the decision on interest rates by the US Federal Reserve in their upcoming meeting at the end of December.
Thailand’s Minister of Agriculture announced a 38 billion baht ($1.1 billion) assistance plan for rice farmers, aiming to boost productivity, and is set to present to the cabinet during its upcoming meeting this Friday. Under the plan, rice farmers will receive 1,000 baht ($29) per rai for up to 10 rai (1.6 hectares), benefiting approximately 4.68 million households nationwide.
The People’s Bank of China (PBOC) maintained the medium-term lending facility (MLF) rate steady at 2.0% for the one-year loans, as it opts for stability amidst potential currency volatility following Donald Trump’s U.S. presidential election win.
Economists stated that preserving the MLF rate ensures “greater policy maneuverability” in the face of a new U.S. administration and tight net-interest-margins of commercial banks in the country.
Goldman Sachs noted that central banks across Asia are predicted to exercise caution when considering monetary policy easing, given the strength of the US dollar and potential tariffs imposed by the Trump administration.
The firm anticipated that the Bank of Korea will refrain from another interest rate reduction this week, while Indonesian officials have warned that US political events may limit their scope to reduce borrowing costs.
