SET rebound tops Asia-Pacific markets

SET rebound tops Asia-Pacific markets

Investors buoyed by huge stimulus packages being rolled out worldwide

The SET index jumps almost 8% to end the week on a positive note. (Bangkok Post file photo)
The SET index jumps almost 8% to end the week on a positive note. (Bangkok Post file photo)

After a rollercoaster ride, Thailand’s stock market ended the week on a positive note with the biggest rebound of all the Asia-Pacific bourses, as global efforts to combat the Covid-19 pandemic and a rise in oil prices provided a boost of confidence.

The Stock Exchange of Thailand (SET) index rallied by 83.05 points, or 7.95%, to close at 1,127.23 points in turnover worth 93 billion baht. That was down only marginally from 1,128.91 at the end of the previous week, when the index lost 17.9%.

Most large-cap shares saw a double-digit gain across the board, with shares of PTT Exploration and Production Plc (PTTEP) rallying the most, by 15%, followed by GPSC (+14.95%), BAM (+14.86%), PTT (14.56%) and SCC (14.49%).

Policymakers around the world have cut interest rates and pumped liquidity into markets this week in a bid to stave off the economic shock from the virus pandemic, Bloomberg reported.

“US President Donald Trump’s stimulus package and his comment on getting involved in the global price war between Opec and its allies have a psychological effect in boosting hopes of inflation from concerns over deflation,” said Kobsidthi Silpachai, head of capital markets research at Kasikornbank.

The US Senate was debating a US$1 trillion-plus package that would include direct financial help for Americans, relief for small businesses and steps to stabilise the economy.

Still, monetary policy stimulus will have a minimal effect going forward due to the limited policy space,  Mr Kobsidthi said.

“Investors will be keeping a close watch on the global death toll of the Covid-19 pandemic.”

Policymakers need to come up with a debt moratorium policy to ease the suffering of businesses affected by lower production output and lockdown measures, he said.

Thailand’s trade statics for February and interest rate decision by the Bank of Thailand’s Monetary Policy Committee will have an impact on the SET's movement next week, according to KGI Securities.


Do you like the content of this article?
COMMENT (1)

Kriangsak plans to testify over gloves saga

Kriangsak Prateepvisut, director of the Public Warehouse Organisation (PWO), has revealed that a network of people -- inside and outside of the PWO -- took part in a corruption scheme in the procurement of rubber gloves worth 112.5 billion baht.

10:30

Vatana case hits roadblock

There are no legal channels to reopen the investigation into the case in which fugitive former deputy interior minister Vatana Asavahame was sentenced by the Supreme Court in 2008 for abuse of power in a case linked to the Klong Dan wastewater treatment scandal, Justice Minister Somsak Thepsutin said.

10:00

Stroke death toll can be cut with swift treatment

Deaths among stoke sufferers could be heavily cut if the patient receives treatment within four hours of having an attack, the Neurological Society of Thailand (NST) has told the government.

09:30