Market Roundup September 5: SET index closed at 1,404.28 up 3%

The Thai stock market and baht experienced significant gains on September 5, 2024, driven by investor optimism following the formation of the new government. This positive sentiment stems from the perceived continuity of policy, particularly regarding economic stimulus measures.

Key Takeaways

• The SET index closed at 1,404.28 with a positive change of +38.79 points and a total trading value of 81,736.15 million Baht.
• The SET50 and SET100 indices also experienced positive changes of +28.16 and +59.82 points respectively, with significant trading volumes.
• The trading value was dominated by institutional and individual investors, while foreign investors showed a net selling position.

The benchmark Stock Exchange of Thailand Index surged by as much as 3%, reaching its highest point since March 2023. Notably, packaging, information technology, and petrochemical companies led the gains. The baht strengthened by 1.5% against the US dollar, reaching its strongest level since May 2023, making Thai stocks more attractive to dollar-based investors.

On 5th September 2024, the stock market closed with the following key indices: SET at 1,404.28 (+38.79), SET50 at 888.75 (+28.16), and SET100 at 1,935.42 (+59.82). The SETTRI index stood at 10,208.87, showing a 0.11% increase.

The formation of the new government under Prime Minister Paetongtarn Shinawatra has eased political uncertainty, contributing to investor confidence. The government’s planned 10,000 baht cash handout program for eligible Thais over 16 years of age, expected to start this month, is seen as a positive step. Further bolstering investor sentiment is the establishment of a new government-backed Vayupak Fund, designed to invest in local shares and support the market. Additionally, expectations of US Federal Reserve interest rate cuts are also contributing to the positive outlook for Thai assets. While foreign investors have been net sellers of Thai shares so far 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.