Thailand’s SET Index closed at 1,364.81 points, increased 9.94 points or 0.73% with a trading value of 47.33 billion baht. The analyst stated that the Thai stock market extended gains, driven by speculative buying prompted by signals of rate cuts from the US Federal Reserve, the appreciation of the Thai baht attracting fund inflows, and the forthcoming launch of the Vayupak Mutual Fund expected to begin in the fourth quarter of 2024. Notably, domestic play stocks played a significant role in driving the market gains.
The analyst expected the market to bear a limited upside tomorrow.
In the second quarter of 2024, employment in Thailand fell by 0.4% compared to the previous year, primarily attributed to a decrease in agricultural jobs, following a 0.1% dip in the preceding quarter.
Agricultural employment witnessed a significant 5% decline year-on-year, while non-farm employment saw a 1.5% increase during the same period.
Goldman Sachs believes it is still likely possible for a 50bps interest rate cut by the Federal Reserve in September if the employment report is soft again.
The US investment bank stated that in a speech at the Federal Reserve’s Jackson Hole conference, Chair Jerome Powell indicated the possibility of a reduction in interest rates at the upcoming September meeting. However, he emphasized that the exact timing and magnitude of the cut would be contingent on the latest data.
The People’s Bank of China (PBOC) opted to keep its key interest rate steady to control a bond frenzy and support the economy cautiously.
The central bank left the rate on its one-year policy loans unchanged at 2.3%, following a 20 basis point reduction in July. In a move to balance liquidity and prevent excessive bond buying, the bank withdrew a net 101 billion yuan ($14 billion) from the banking system this month as 401 billion yuan of loans matured on August 15.
