Thailand’s SET Index closed at 1,341.03 points, increased 3.20 points or 0.24% with a trading value of 38.46 billion baht. The analyst stated that the Thai stock market increased for the fifth consecutive day, driven by increased activity in retail stocks fueled by speculation surrounding the potential benefits of the cash handout (digital wallet) scheme. Additionally, there was notable interest in power and transportation stocks, contributing to the market’s positive performance.
Investor sentiment was further buoyed by expectations of a rate cut by the US Federal Reserve, spurring fund inflows into the market. Meanwhile, investors would monitor the upcoming speech by Fed Chair Jerome Powell.
The analyst expected the market to trade sideways tomorrow.
Thailand’s Caretaker Finance Minister, Pichai Chunhavajira, emphasized the need for the central bank to intervene and assist retail borrowers following its decision to maintain the benchmark interest rate steady earlier this week. Pichai expressed concerns regarding the excessively high retail lending rates, citing minimum rates of up to 8% at banks.
During the fifth consecutive meeting where the central bank opted to keep the key interest rate at 2.50%, Pichai remarked that the rates remain a challenge for retail borrowers and called for action to rectify the situation.
The Bank of Korea opted to maintain its interest rates at 3.50% on Thursday, while also implying a willingness to commence easing measures as inflation and economic growth showed signs of moderation, setting the stage for a potential rate reduction at its October meeting.
The central bank expressed in its policy statement the need to evaluate the appropriate timing for rate reductions while adhering to a prudent monetary policy stance. Analysts anticipate the BOK to initiate interest rate cuts at the upcoming policy meeting on October 11, coinciding with the anticipated first rate cut by the U.S. Federal Reserve in four years.
Euro zone business activity displayed unexpected strength in August despite firms implementing price hikes, potentially dampening anticipations for two more rate reductions from the European Central Bank (ECB) in 2024.
Notably, the robust performance was influenced by a significant rise in French services activity linked to the Olympic Games, casting doubt on the sustainability of the upturn.
HCOB’s preliminary composite PMI, compiled by S&P Global, surged to 51.2 this month, surpassing forecasts in a Reuters poll. This increase from July’s 50.2 suggests an expansion in economic activity, despite firms in the eurozone raising prices at a faster rate.
