Thailand’s SET Index closed at 1,469.46 points, decreased 1.97 points or 0.13% with a trading value of 45 billion baht. The analyst stated that the Thai stock market moved in both negative and positive territory. While there was selling pressure from the energy stock, gains from DELTA Thailand were able to hold the index near the flat line.
Overall, there was no positive catalyst to buoy the market even after concerns over US shutdown was eased, but weakening Thai baht continued to pressure the market.
Today, Thailand’s Prime Minister Srettha Thavisin met with the Bank of Thailand’s governor for general discussion, according to the statement the PM gave, which he said was productive.
However, the market speculated that the meeting was held due to the policy rate hike last week that defied the consensus for a hold. Moreover, the measure of handing out THB10,000 to every Thai at the age over 16 was believed to be one of the topics being discussed today as the government would need 560 billion baht in total to make this populus scheme happen.
Meanwhile, tourism is booming with the new scheme of a temporary visa exemption for Chinese and Kazakhs. According to the government spokesman Chai Wacharonke, Thailand had welcomed more than 22,000 Chinese travellers on the first two days of the measure.
The report from the Chinese embassy to Thailand showed that about 650,000 mainlanders have booked trips to Thailand in October. Meanwhile, the Tourism Authority of Thailand (TAT) expects Chinese arrivals of around 4-4.4 million this year.
However, the World Bank trimmed Thailand’s economic growth in 2023 along with the projection for East Asia Pacific countries due to the slowdown in China.
Growth in South East Asia’s second largest economy was trimmed by the World Bank to 3.4% in 2023 from 3.6% in an earlier forecast. Meanwhile, 2024 economic growth was also cut by two percentage points as well, dropping to 3.5% from 3.7% estimated in April.
