Thailand’s SET Index closed at 1,300.96 points, decreased 8.50 points or 0.65% with a trading value of 54.52 billion baht. The analyst stated that the Thai stock market decreased as it was pressured by the selloff of big-cap stocks following the weight adjustment of SET50 and SET 100 indexes, which caused volatility in the SET index. Meanwhile, the selloff of EA, caused by specific catalysts, also played a crucial role in the decline.
The analyst expected the market to trade sideways next week, while investors monitored the announcement of stimulus measures from the Thai government and employment figures from the US.
The International Monetary Fund (IMF) has expressed concerns over the United States running excessive deficits and accumulating too much debt, along with cautioning against aggressive trade policies.
Despite acknowledging the US economy as strong and adaptable, the IMF delivered unusually harsh criticism towards its largest shareholder. The fund also revised its growth projection for the US slightly downwards to 2.6% for the year, a 0.1 percentage point drop from the earlier forecast in April.
Projections for the 2024 fiscal year indicate a further widening of the US deficit, with estimates suggesting a ratio of 6.7% of GDP, up from a previous forecast of 5.3% in February. In contrast, the European Union advises member states to maintain deficits at 3% or lower, with the US historical average standing at 3.7% over the past fifty years as per the CBO.
Thailand’s manufacturing production index experienced an unexpected drop of 1.54% in May compared to the same period last year. This decline was attributed to lower car manufacturing and increased energy expenses.
The decrease contrasted with the 1.35% growth forecasted in a Reuters survey for May and followed a revised 2.69% yearly increase in April, marking the first rise in 19 months.
For the January-May period, factory output witnessed a 2.08% decrease year-on-year. In the previous month, the ministry had indicated expectations of a 0% to 1% uptick in production for 2024.
