SET jumps to 1,431 points since Paetongtarn named premier
The Thai stock market surge reflects increased investor confidence in the new government, as analysts attribute this to expected policy announcements and stability
The Thai stock market responded positively to the appointment of Prime Minister Paetongtarn Shinawatra, with the SET (Stock Exchange of Thailand) Index jumping from 1,303 to 1,431.13 points.
SET closed at 1,431.13 points on Monday (September 9), up 3.49 points or 0.24% from the previous trade day, with a total trade volume of 87.42 billion baht.
Analysts said the SET index has been on the rise since August 16 when the Parliament voted for the PM. It also recorded a sudden jump of 38.79 points on September 5, when it closed at 1,404.28 points.
Analysts put this jump to investors welcoming the upcoming swearing-in of the new PM and 35 Cabinet ministers in front of the King on the following day (September 6).
Wijit Arayapisit, an investment strategist at Liberator Securities, said the continuous surge in the Thai stock market is the result of renewed confidence among investors. The gradual increases across “Big Cap” stocks were driven by the clear direction of the new government after the ousting of former PM Srettha Thavisin, he said.
“The new government still uses the same team at the Finance Ministry, which has been pushing for a third Vayupak Fund to increase the capital via state-owned securities,” he said. “Judging from the market sentiment, SET can soar higher to around 1,450 points and start hitting the resistance barrier.”
Terdsak Taweethiratham, deputy managing director of research at Asia Plus Securities, noted that the recent rise in the Thai stock market indicates investors’ anticipation of more capital entering the market and thus boosting share prices.
This belief is partly driven by investment projects that the new government is expected to announce in its policy statement on Thursday, said Terdsak.
“Investors believe there is a growing chance that the US Federal Reserve will increase the policy rate in the next meeting,” he said. “This move would weaken the dollar while the baht will continue to strengthen, causing more funds to flow to Asian markets.”
