SET index rallies on trade row cooling

SET index rallies on trade row cooling

The SET index jumps 22.38 points or 1.33% on Wednesday. (Bangkok Post file photo)
The SET index jumps 22.38 points or 1.33% on Wednesday. (Bangkok Post file photo)

The Stock Exchange of Thailand (SET) index rallied on Wednesday to an eight-month high as investors priced in growing external optimism over lessened trade tensions and dovish monetary policies.

Mr Trump also said he had a “very good telephone conversation” with his Chinese counterpart.

Sentiment was further moved by the European Central Bank president’s comments on the possibility of further monetary stimulus, given that GDP growth in the euro-zone bloc hasn’t improved, said Nuttachart Mekmasin, executive director of Trinity Securities’ research department.

“Market participants have priced in positive developments on the lower interest rate outlook and [bilateral] trade talks, but they have yet to price in results of the trade talks, which are still shrouded in uncertainty,” Mr Nuttachart said.  

Thailand’s benchmark index closed on Wednesday at 1,705.98 points, up 22.38 points or 1.3% from the previous day, in heavy turnover worth 107.6 billion baht.

Institutional investors were the largest net buyers of shares at 9.35 billion baht.

The SET index’s rally was in line with gains seen in other Asian indices, with Hong Kong’s Hang Seng up 2.6% and Japan’s Nikkei 225 up 1.7%.

Large-cap shares contributed to the rally of the Thai bourse, with AOT up 8.5%, followed by TRUE (+4.7%), BTS (+2.6%) and TOP (+2.5%).

Investors speculated in Airports of Thailand shares after King Power Group promised AoT that it would pay a guaranteed 23.5 billion baht for first-year operations of commercial areas at Suvarnabhumi duty-free shops and other shops located in Phuket, Chiang Mai and Hat Yai airports, said SCB Securities managing director Sukit Udomsirikul, noting that the sum is higher than the 14.5-billion-baht estimate of SCBS.

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