Investors are anticipating a rally in the Thai stock market, following a rise in confidence under the helm of the new government, led by Paethongtha Sinawatra, the daughter of former prime minister Thaksin Sinawatra.
Positive trends can be seen following key events happening in Thailand. In a recent political move, the Thai parliament voted to appoint Paethongtha Sinawatra as the new Prime Minister on August 16, causing the SET Index to rise by 1.02% on that day.
Afterward, Thaksin Sinawatra, a key figure of the Pheu Thai Party, presented strategies for economic and capital market stimulation at the Vision for Thailand 2024 event on the evening of August 22. Following this, the Thai stock market saw a 1.03% increase on August 23.
Presently, the new cabinet lineup under Paethongtha Sinawatra has been submitted for approval by the king on September 3, with expectations of approval within the week. Despite regional markets facing a downturn, the Thai stock market showed resilience on September 3, with a 1% increase, indicating a decreased impact of external factors on the local market as global attention is currently focusing on the upcoming release of US job data for August, scheduled for this Friday.
Investors in the Thai market are eagerly anticipating the policy statement set for September 16. The market sentiment remains hopeful that the new government’s policies will boost confidence, potentially leading to a market upsurge, given investors’ preference for stability over uncertainties.
A similar trend was observed when Srettha Thavisin assumed office as the Thai Prime Minister, leading to a seven-day winning streak and a total market gain of over 3%.
