Banking stocks rose on Thursday after the MPC voted unanimously to raise policy rates by 25 basis points to 1.00%, the second consecutive 25-basis-point increase.
As of 10.22 a.m. Thai time, the share price of Bangkok Bank Pcl. (SET: BBL) rose THB3.50/share, or 2.57%, to THB139.50/share, with a trading value of THB578 million.
The share price of SCB X Pcl. (SET: SCB) rose THB2.50/share, or 2.42%, to THB106.00/share, with a trading value of THB511 million.
The share price of Krung Thai Bank Pcl. (SET: KTB) rose THB0.30/share, or 1.81%, to THB16.90/share, with a trading value of THB57 million.
The share price of Kasikornbank Pcl. (SET: KBANK) rose THB2.50/share, or 1.74%, to THB146.00/share, with a trading value of THB685 million.
The share price of TTBThanachart Bank Pcl. (SET: TTB) rose THB0.02/share, or 1.65%, to THB1.23/share, with a trading value of THB65 million.
The Bank of Thailand on Wednesday raised the monetary policy rate by 25 basis points, hiking its benchmark to 1% in a battle to tame inflation and protect the Thai baht from sliding against the US dollar. The second-straight 25bps raise was in line with expectations.
Thailand’s economy, according to the central bank, will continue to recover, while inflation will remain high. The BOT predicted that Thailand’s GDP would grow by 3.3% this year and 3.8% in 2023. Headline inflation is forecast to remain elevated at 6.3% this year before dropping to 2.6% in 2023.
In a note released on Thursday, Krungsri Securities expected that rates would be raised by 25 basis points in November, bringing the annual average to 1.25%. The growth of NIM, however, would be slow and steady. Based on their loan portfolio and deposit structure, major banks like KTB, KBANK, SCB, and BBL will reap the greatest benefits from the upcoming rate hike cycle.
Krungsri does not anticipate an aggressive BOT hike of 50 basis points due to the limited risk and impact of a second-wave of inflation or wage price spiral.
