Thailand’s SET Index closed at 1,396.96 points, increased 13.03 points or 0.94% with a trading value of 50.7 billion baht. The analyst stated that the Thai stock market edged higher to conform with the regional markets, as the global markets started to price in the possibility of about 4.5 rate cuts by the Federal Reserve, instead of 6 in prior forecast. This could slowdown the accelerating US bond yield.
The Thai economy was getting healthier from the constant recovery of tourism, while the country also received positive factors from China as the world’s second largest economy deployed a more strict regulation on its stock market to maintain the stability.
The analyst expected the market to potentially extend its gain tomorrow.
Thailand’s Prime Minister Srettha Thavisin made a statement before the meeting of the cabinet, urging the Monetary Policy Committee to consider the possibility of interest rate cut as he elaborated that the benchmark is still high even if the central bank cuts the current rate from 2.5% to 2.25%.
The Thai PM continues to pressure the central bank to cut rates, but analysts are not jumping on the train just yet.
The Bank of Thailand is expected to keep its key interest rate unchanged at the meeting this week and could leave it there until early 2025, according to the consensus from LSEG.
The China Securities Regulatory Commission (CSRC) issued a statement on Monday night, vowing to make those who illegally manipulate the market, engage in malicious short selling, bankrupt or jailed.
The Chinese markets responded positively in the morning session as the Shanghai Composite rose 1%, Shenzhen Index jumped 3% and Hong Kong’s Hang Seng Index gained 2% on Tuesday.
The regulators have unveiled several measures to support the market, including an announcement from Central Huijin Investment Ltd., the unit that holds Chinese government stakes in big financial institutions, to buy more exchange-traded funds (ETFs) to stabilize the operation of the capital market. There are also measures that aim to tackle margin financing and short selling, as well as actions to mitigate the possible risks associated with collateral equity.
Meanwhile, China’s margin debt for stock trades dropped the most since 2016 as a plummet in stock markets triggered traders to unwind leveraged positions.
