The Thai stock market rebounded on Tuesday as expectations of further monetary stimulus by global central banks buoyed investor sentiment previously weakened by the Covid-19 epidemic.
The Stock Exchange of Thailand (SET) index edged up 2.94% to close at 1,375.02 points in turnover worth 70.05 billion baht.
A rally was seen in large-cap stocks, where share prices started to recover after experiencing continuous correction last week on the back of growing concerns of a Covid-19 pandemic.
Veeravat Virochpoka, vice-president at Finansia Syrus Securities, said market sentiment has somewhat improved as both the US Federal Reserve and the Bank of Thailand are expected to slash their policy interest rates further on the back of weak economic data.
“Central banks are expected to continue ease their monetary policies further as sentiment still remains poor and containment of the Covid-19 epidemic still cannot be predicted,” said Mr Veeravat.
The SET index outlook remains volatile depending on market reactions to developments of the novel coronavirus outbreak. The bourse is expected to move in a range of 1,320-1,400 this week and investors are suggested to accumulate defensive and high dividend-yield stocks, according to Finansia Syrus Securities.
Thai bond yields have also seen a decline recently following investors’ need to seek refuge in a safe haven asset and growing expectations of additional rate cuts. The 10-year government bond yield stood at 1.1% on Tuesday.
Most Southeast Asian markets pulled back from session highs, but Indonesia and Thailand held on to their gains.