Thailand’s SET Index closed at 1,485.01 points, increased 19.98 points or 1.36% with a trading value of 77.18 billion baht. The analyst stated that the Thai stock market increased sharply following the decision from the Monetary Policy Committee to cut its key policy rates by 25 basis points. This substantial growth in the Thai market diverged from the downward trajectory observed in Asian markets, which mirrored movements on Wall Street. Meanwhile, analysts predict that Thai banks will deliver robust earnings reports in the third quarter of 2024, supported by reduced provisions.
The analyst expected the Thai market to potentially reach 1,500 points tomorrow.
The Bank of Thailand (BOT) decided to lower its key interest rate during a policy review on Wednesday. This move, which has been advocated for by the government to stimulate a sluggish economy facing below-target inflation, marks a significant shift in monetary policy.
The BOT’s monetary policy committee, with a 5 to 2 vote, opted to decrease the one-day repurchase rate by 25 basis points to 2.25%. This adjustment comes after maintaining a decade-high rate of 2.50% since September 2023.
In September, Thailand’s industrial sentiment index plunged to a 27-month low attributed to subdued domestic demand, the impact of flooding, and a robust baht, as reported by the Federation of Thai Industries (FTI).
The FTI disclosed that the industrial sentiment index declined to 87.1 in September from 87.7 in August. The weakened purchasing power resulted from high levels of household debt, leading to a decline in auto sales due to tightened lending criteria by banks.
In August, Japan experienced a 1.9% decline in core machinery orders compared to the previous month, marking a second consecutive month of decrease, as per government data released on Wednesday. The reduction exceeded economists’ expectations, predicting a marginal 0.1% drop.
On a yearly basis, the highly volatile core orders, considered a pivotal gauge of forthcoming capital expenditure in the next six to nine months, contracted by 3.4%, contrasting with a projected 3.6% growth.
Inflation in the U.K. saw a significant decline to 1.7% in September, below the Bank of England’s 2% target. This marks the first time the headline rate has dropped beneath the central bank’s target since April 2021, contrary to the 1.9% forecasted by economists surveyed by Reuters.
Over the last four months, inflation has been lingering around the 2% mark, registering at 2.2% in August before experiencing a noteworthy decrease in September to 1.7%.
