Thai stocks surged as trading resumed after the Chakri Memorial Day holiday, boosted by rising optimism about a waning coronavirus outbreak and the government’s new economic stimulus.
The benchmark SET Index rose 6.7% as of 4.58pm in Bangkok, poised for the highest gain since March 11. The gauge has advanced almost 19% from its low on March 23.
The Thai government is planning new borrowing of 1 trillion baht for its latest stimulus package to counter the economic impact of the coronavirus outbreak. The package is worth about 1.9 trillion baht overall as it also includes 900 billion baht of measures by the Bank of Thailand, according to Finance Minister Uttama Savanayana.
“Market has a positive view on the stimulus package,” said Mayuree Chowvikran, Deputy Managing Director at Yuanta Securities (Thailand) Co in Bangkok. The baht’s strength may also indicate the return of some foreign funds into Thai equities, she said.
Local authorities on Tuesday reported the smallest number of new coronavirus cases in about three weeks, saying restrictions on daily life are containing the spread of the disease. Prime Minister Prayut Chan-o-cha has imposed a state of emergency, curfew and a broad lockdown.