Thailand’s SET Index closed at 1,370.83 points, decreased 7.87 points or 0.57% with a trading value of 38.38 billion baht. The analyst stated that the Thai stock market decreased as it was pressured by the selloff of energy stocks, following the fall of distillation prices, as well as political factors in the country. The index was also affected by the announcement from the US Fed to maintain high levels of interest rates until inflation slowed down.
The analyst expected the market to trade sideways on Thursday.
The ratio of non-performing loans (NPLs) in Thai banks increased slightly from 2.66% in December to 2.74% in March. Despite this uptick, the central bank reassured that the level of bad loans remains manageable, attributing the strength of banks to their high capital levels.
The Bank of Thailand anticipates a decrease in the household debt to GDP ratio in Q1 due to a more positive-than-expected GDP growth outlook.
Federal Reserve officials remain cautious about declaring that inflation is on track to reach the central bank’s 2% target, following a recent easing in consumer price pressures in April.
The consumer price index (CPI) rose by 0.3% from March, slightly below the estimated 0.4% by Dow Jones. Despite the monthly increase, the CPI showed a 3.4% rise over the twelve-month period, meeting expectations. The report highlighted that price increases in April were driven significantly by higher costs in shelter and energy.
Thailand is seeking further stimulus measures to bolster its economy following lower-than-expected growth in the first quarter, according to the country’s finance minister on Tuesday.
The economy of Southeast Asia’s second-largest nation expanded by 1.5% year-on-year in the first quarter, surpassing analysts’ projections but falling short of the 1.7% annualized growth recorded in the previous quarter.
Finance Minister Pichai Chunhavajira acknowledged the underperformance, stating that while there was still growth, it did not meet expectations. He emphasized the necessity of implementing short-term economic stimulus measures without providing specific details.
Pichai revealed that the cabinet had approved a plan to increase the budget for the fiscal year 2024 to help finance a 500 billion baht digital handout scheme. The exact budget augmentation, not to exceed 122 billion baht as initially estimated by the Budget Bureau, is yet to be determined in the current month. This adjustment would bring the total 2024 budget to 3.6 trillion baht, with plans to seek cabinet approval for the enhanced budget on May 28.
