Thailand’s SET Index rose 0.70% due to strong economic growth, but limited upside persists. Bank of Japan remains cautious on rate hikes. Goldman predicts record gold prices. Thai Airways’ recapitalization impacts banks positively.
Thai Stock Market Overview
Thailand’s SET Index experienced an increase, closing at 1,452.78 points, up by 10.15 points or 0.70%, with a trading volume of 38.89 billion baht. Analysts credit this surge to unexpected Thai economic growth in the third quarter, which positively influenced market sentiment. However, the market’s potential is capped due to lower-than-expected earnings from listed companies, which may necessitate revisions.
Economic Insights and Projections
Ahead of the Bank of Japan’s December meeting, Governor Kazuo Ueda provided no clear indications on interest rate adjustments, maintaining that any changes are linked to economic conditions. Ueda emphasized the need for vigilance regarding risks, particularly from the US economy, while remaining optimistic due to recent favorable US data.
Concurrently, Goldman Sachs predicted a rise in gold prices by 2025 due to Federal Reserve policies, with a target of $3,000 per ounce, supported by increased demand and rate cuts. Meanwhile, CGS International Securities sees a positive outlook for Bangkok Bank and Krung Thai Bank, given Thai Airways’ debt-to-equity conversion plan.
While the SET Index showed promising growth, the market’s potential remains capped due to lower-than-expected earnings. The economic landscape remains uncertain, with key factors such as interest rate adjustments and gold prices playing a significant role in shaping future market trends.
United States
In the United States, the markets remained relatively stable following the confirmation of Donald Trump’s return to the White House. The Republican Party retained its narrow majority in the House, securing unified control of Congress and the presidency. This political stability is expected to facilitate the implementation of Trump’s key agenda items, including tax cuts, immigration controls, and deregulation. However, the market reaction was limited as most of these developments had already been priced in.
Europe
European markets faced a more challenging environment. The G7 confirmed its pledge to impose severe costs on Russia for its ongoing war in Ukraine. This announcement, coupled with the US decision to lift the ban on Ukraine using US-made weapons to strike deeper into Russia, heightened geopolitical tensions. Additionally, Sweden, Finland, and Norway released new advice on surviving war, reflecting the growing security concerns in the region
