Thailand’s SET Index closed at 1,369.29 points, decreased 4.04 points or 0.29% with a trading value of 39.85 billion baht. The analyst stated that the Thai stock market traded with volatility after the index increased in the morning session, as it was supported by larger-than-expected exports and imports figures from China. The Thai market declined in the afternoon session, as there were selloffs of small and medium stocks, while there were no supporting factors to offset the decrease.
The analyst expected the market to trade sideways tomorrow.
China’s trade data for April revealed that while exports increased as anticipated, imports experienced a surge exceeding initial forecasts.
The data disclosed that China’s exports in U.S. dollar terms were in line with expectations polled by Reuters as the figures grew by 1.5% year-on-year in April, while imports saw a notable 8.4% climb, exceeding an expectation of 4.8% increase from the same period last year.
Challenges such as lackluster domestic demand impacting imports and global demand slowdown, as well as conflicts with key trading partners like the U.S., have affected China’s trade performance.
Amidst factors like the Biden administration’s proposal to triple tariffs on Chinese steel and President Trump’s intention to raise tariffs on Chinese goods, trade figures of the world’s second largest economy have also been affected by COVID-19 pandemic as it accelerated efforts to diversify supply chains away from the country.
Thailand’s economy is projected to expand by 2.2% to 2.7% this year, a decrease from the previous estimate of 2.8% to 3.3% due to a slow recovery in exports, according to a prominent joint business group. As in the first quarter of 2024, Thailand’s exports declined by 0.2% year-on-year, as per data from the commerce ministry.
The Joint Standing Committee on Commerce, Industry, and Banking, comprising representatives from these sectors, anticipates that Thailand’s exports will only grow by 0.5% to 1.5% this year, compared to the earlier projection of 2% to 3%.
The finance ministry recently revised the country’s economic growth forecast for 2024 to 2.4%, down from the previous 2.8%, but indicated that growth could still reach 3.3% if the government successfully implements its 500 billion baht ($13.5 billion) household stimulus plan in the fourth quarter as scheduled.
