Market Roundup 26 August 2024

Thailand’s SET Index increased by 0.73% as a result of speculative buying driven by signals of a US interest rate cut and domestic factors. Employment in Thailand decreased by 0.4% in Q2 2024, with a 5% decline in agricultural jobs leading the way.

Thailand Stock Market Gains

Thailand’s SET Index closed at 1,364.81 points, rising by 9.94 points or 0.73%, with a trading value of 47.33 billion baht. Analysts attributed the gains to speculative buying driven by signals of rate cuts from the US Federal Reserve, the appreciation of the Thai baht, and the forthcoming Vayupak Mutual Fund launch in Q4 2024. Domestic play stocks also played a significant role. However, analysts predict a limited upside in the market the following day.

Economic and Policy Updates

In Q2 2024, Thailand’s employment fell by 0.4% year-on-year due to a decrease in agricultural jobs. Agricultural employment dropped by 5%, while non-farm employment rose by 1.5%. Goldman Sachs speculates a possible 50bps rate cut by the US Federal Reserve in September if the employment report remains weak. Meanwhile, the People’s Bank of China kept its key interest rate steady at 2.3% to manage a bond frenzy and ensure economic stability, withdrawing a net 101 billion yuan from the banking system.