Thailand’s SET Index closed at 1,438.25 points, decreased 5.06 points or 0.35% with a trading value of 37.17 billion baht. The analyst stated that the Thai stock market remained stagnant, influenced by the sell-off in energy stocks due to decreased oil prices following the easing of tensions in the Middle East as Israel and Lebanon approved a temporary ceasefire agreement between Israel and Hezbollah. Additionally, profit-taking activities were noted in stocks related to GULF, including GULF, ADVANC, and INTUCH.
Stocks like DELTA, HANA, and KCE staged a recovery after a period of decline. The upbeat mood driven by Thailand’s robust export performance in October also provided a boost to stocks such as STGT, which saw a 5.6% rise, in addition to SAPPE and MALEE, posting gains of 1.3% and 5%, respectively.
Meanwhile, concerns arise in the Thai market as US President-elect Donald Trump gears up to escalate import tariffs on China, Canada, and Mexico, potentially reigniting the trade tensions between the US and China. This looming development has led to a potential outflow of foreign capital, along with a decrease in institutional investments.
The analyst expected the Thai market to remain static tomorrow.
Thailand’s October exports surged by 14.6% year-on-year, exceeding market projections. This growth in customs-cleared exports outperformed the anticipated 5.2% increase according to a Reuters poll for the same period, marking a substantial improvement from September’s 1.1% rise.
The country’s household debt in 2Q24 experienced a mild surge of 1.3%, amounting to approximately 16.32 trillion baht ($471.78 billion), in contrast to the previous quarter’s rise of 2.3%, leading to a decrease in debt-to-GDP ratio from 90.7% to 89.6% during the period.
Donald Trump announced on his social media platform, Truth Social, that he intends to impose higher tariffs on Chinese goods by 10% and on imports from Mexico and Canada by 25%. These actions not only target the United States’ three largest trading partners but could potentially dismantle the regional free trade agreement.
Meanwhile, following the development, China highlighted the mutual benefits of economic cooperation between itself and the US, saying no one will emerge victorious from a trade war.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, expressed his openness to further interest rate cuts in December, recognizing the legitimacy of the debate surrounding a potential 25-basis-point cut in December.
Ahead of the Federal Reserve’s next meeting scheduled for December 17-18, policymakers will receive a new report on the targeted inflation indicator this Wednesday, along with the latest monthly job market assessment and a consumer price report.
