SET reacts happily to news as Asean shares sag

SET reacts happily to news as Asean shares sag

Thai stocks bucked the regional sentiment on Wednesday, rising nearly 1% on news that the regime was finally ready to set an election date. (File photo)
Thai stocks bucked the regional sentiment on Wednesday, rising nearly 1% on news that the regime was finally ready to set an election date. (File photo)

Thailand's stock market reacted positively to the Election Commission (EC) announcement scheduling the general election on March 24, bucking a regional sell-off trend seen across Asean.

This will be the first election in almost five years after the military junta seized power in a 2014 coup.

EC chairman Itthiporn Boonprakong said commissioners agreed on the date after a royal decree calling for the election of a new House of Representatives was published Wednesday in the Royal Gazette.

The EC will forward its decision to the government, which will publish the date in the Royal Gazette.

The news was a boon for investor sentiment, with the Stock Exchange of Thailand (SET) index climbing 0.97% to close at 1,617.38 points. Turnover registered 67.9 billion baht.

Institutional investors were net buyers of 6.4 billion baht, with brokerage firms purchasing 293.3 million worth of shares.

Gains in the Thai bourse were led by telecom, banking and healthcare stocks, with INTUCH surging 10.1%, followed by ADVANC (+2%), SCB (1.97%) and BDMS (1.32%).

Although the upcoming general election is good news for every stakeholder, the SET index's rebound is expected to be a short-term phenomenon, while the medium- to long-term outlook still hinges on the next administration's economic development policies, said Pattera Dilokrungthirapop, chairwoman of the Association of Securities Companies (Asco).

The market is still concerned about external factors, particularly the US-China trade dispute and the anticipated global economic slowdown, Mrs Pattera said.

SCB Securities chief executive Kampol Jantavibool concurred with Mrs Pattera, saying the next government's economic policies and external factors will determine the Thai bourse's long-term outlook.

The firm has a positive view on the economic growth trajectory and believes the next government will continue investing in existing projects to support economic growth at the micro level, Mr Kampol said.

Kasikorn Securities executive chairman Thiti Tantikulanan said external factors will be the main attributes determining the SET index's movement, with the general election viewed as a short-term boon supporting market sentiment.

The US-China trade dispute, the US political course, the Federal Reserve's interest rate normalisation and China's economy are factors influencing the direction of global economic growth and the trade outlook, Mr Thiti said.

Asco and the SET will hold their first joint investment expo this Saturday at Queen Sirikit National Convention Center, under the theme "Digital Transformation by Securities Industry".

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