Thailand’s SET Index was relatively stable throughout this week after a recent uptick that saw the index rebound by 6% from a four-year low in early August, prompted by apprehensions of a US recession.
Asia Plus Securities wrote in its research stating that it expected to see an improvement in fundamentals in the following week for SET Index. Anticipation surrounds the finalization of the new cabinet, awaiting royal approval, after which the new government is poised to commence operations in the third week of September 2024. Additionally, plans are in place to kickstart the digital wallet distribution in phase 1.
Following these developments, a surge in the SET Index is expected, surpassing the 1,370-point mark. Favorable international trade figures have exceeded expectations, contributing to a reduced recession risk for Thailand, as indicated by Bloomberg’s survey, which decreased from 18% to 13%.
Forecasts suggest the SET Index to hover between 1,350 and 1,365 points initially, with an eventual upward trajectory. The ongoing correction in the SET is anticipated to conclude shortly, with a rebound driven by advancements in government formation and economic stimulus initiatives. Notable recommendations for investment picks include BH, INTUCH, and OSP.
