Thai Stock Market Gains Amid Global Stability Ahead of Key Inflation Data

Thai stock market rises for second consecutive session, gaining 0.2% to reach 1,370 points, following global market trends. The market's stability is crucial for Thailand's economy, influencing investor confidence and key sectors like tourism.

Nitish Verma
New Update
Thai Stock Market Gains Amid Global Stability Ahead of Key Inflation Data

Thai Stock Market Gains Amid Global Stability Ahead of Key Inflation Data

The Thai stock market has risen for two consecutive sessions, with the Stock Exchange of Thailand (SET) increasing by 0.2% to reach 1,370 points. The index gained 0.60 points or 0.04% to finish at 1,372.50 on Monday, with a trading range of 1,366.06 and 1,375.14.

This increase follows global market trends, with Asian markets expected to remain stable ahead of the release of key inflation data later this week. The global forecast suggests that Asian markets will experience little movement, as European markets were down and US bourses were mixed and flat.

Why this matters: The stability of the Thai stock market has a ripple effect on the country's economy, influencing investor confidence and potentially impacting the growth of key sectors like tourism. As Thailand navigates economic challenges, its ability to attract foreign investments and maintain a stable business environment will be crucial in driving long-term growth.

In the Thai market, gains in the food and industrial sectors were offset by weakness in technology, finance, and resource stocks. Among the actives, CP All Public surged 2.54%, while Energy Absolute plummeted 11.86%.

The mixed performance in Thailand reflects the broader economic outlook for the country. Thailand's economy is expected to grow between 2.2 and 2.7 percent in 2024, down from a previous forecast of between 2.8 to 3.3 percent. The country's household debt was 87 percent of GDP in 2023, among the highest in the world.

Despite these challenges, Thailand's tourism sector remains a bright spot. The country is expected to attract 36 million tourists in 2024, contributing 2.3 trillion baht (US$62 billion) to the economy. Tourism is an important sector for Thailand, contributing to approximately 20 percent of GDP.

Thailand has also been working to improve its business environment, particularly in high-value industries, to attract more foreign investments. The country's business environment tier was ranked fourth from eighth, and incentives such as support for the electric vehicle industry have been introduced.

In the US market, the Dow Jones Industrial Average sank 81.33 points or 0.21% to finish at 39,431.51, while the NASDAQ gained 47.37 points or 0.29% to end at 16,388.24, and the S&P 500 eased 1.26 points or 0.02% to close at 5,221.42. Oil prices advanced on Monday, with West Texas Intermediate Crude oil futures for June ending higher by $0.86 at $79.12 a barrel, amid expectations of increased demand after OPEC decided to extend supply cuts into the second half of the year.

As investors await the announcement of inflation figures from the US, an analyst expects the Thai stock market to may trade sideways. The key data release is expected to influence market trends in the region, with Asian markets remaining stable in anticipation. Thailand's stock market gains reflect this cautious optimism, as the country navigates economic challenges while leveraging its strengths in sectors like tourism.

Key Takeaways

  • Thai stock market rises for 2nd consecutive session, reaching 1,372.50 points.
  • Global markets expect stability ahead of US inflation data release.
  • Thailand's economy to grow 2.2-2.7% in 2024, with tourism a bright spot.
  • Country aims to attract foreign investments, improve business environment.
  • Thai stock market may trade sideways ahead of US inflation data release.