Thailand’s SET Index rose by 2.84% due to high trading volume and favorable market conditions. Inflation decelerated in August. The Thai government plans to introduce casinos. AI and semiconductor sectors project growth.
Thailand’s SET Index closed at 1,404.28 points, up 2.84% with a trading value of 81.73 billion baht. Analysts attribute the surge to high trading volumes and positive news about the Vayupak Fund, which is expected to attract significant inflows. Additionally, global interest in value stocks, particularly in Thailand and Indonesia, contributed to the rise. Despite a potential minor decline, analysts predict further gains in subsequent trading sessions.
Inflation Trends and Policy Shifts
The new government led by Prime Minister Paetongtarn Shinawatra has helped to reduce political uncertainty, which has in turn increased investor confidence. The government’s upcoming 10,000 baht cash handout program for eligible Thais over 16 years old, scheduled to begin this month, is viewed positively. The establishment of the government-backed Vayupak Fund, aimed at investing in local shares and supporting the market, has further boosted investor sentiment.
Additionally, the anticipation of interest rate cuts by the US Federal Reserve is also contributing to the positive outlook for Thai assets. Although foreign investors have been selling Thai shares this month, they are showing renewed interest in Thai bonds, with $133 million flowing into the market in September, marking the third consecutive month of net foreign inflows.
Thailand’s annual headline inflation rate slowed in August due to rising food prices and falling energy prices, staying below the central bank’s target range. Deputy Finance Minister Julapun Amornvivat announced strong public support for establishing a mega entertainment complex with a casino. Internationally, the Council of Europe will sign the first legally binding AI treaty, and Japan’s BOJ considers adjusting its monetary easing policies. Meanwhile, growth in the AI semiconductor market is projected to outpace the overall chip market, driven by increasing demand.
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