- The Thai stock market dropped on sell-offs of large-cap stocks and concerns about the US trade policy and interest rate trend.
The SET tumbled and hit its new lowest in 4 years and 3 months at 1,236.80 points early in the week, mainly pressured by sell-offs of large-cap stocks, especially those of an airport operator (due to concerns about the impact of its trading partners’ lack of liquidity) and a major electronic component manufacturer (as its latest quarterly results came out weaker-than-expected and led brokers to recommend selling). It then rebounded somewhat to midweek, boosted by the news that the Ministry of Finance is planning to establish the new Thai ESG fund, aiming to absorb the funds from Long-Term Equity Funds (LTFs) that are set to reach their maturity. The SET tumbled again in line with other regional bourses as pressured by the news that the US plans to impose tariffs on automobile, semiconductor and pharmaceutical imports, plus the FOMC minutes indicating that the Fed is in no hurry to cut rates. However, investors’ sell-offs eased somewhat at the end of the week after having fallen sharply earlier. Nonetheless, this week banking and real estate sectors outperformed other sectors. Banking stocks were boosted by dividend payment news while real estate stocks were supported by the news that the Bank of Thailand is considering to ease its loan-to-value (LTV) measure. - On Friday, February 21, 2025, the SET closed at 1,246.21 points, down 2.04% over-week. The average daily trading value was THB52,240.45 million, up 12.56% over-week. The mai closed at 270.49 points, up 3.82% over-week.
February 24-28, 2025, KSecurities expects the SET to have support at 1,235 and 1,225 points, but resistance at 1,270 and 1,285 points, respectively. KResearch advises investors to watch key factors, including Thailand’s January Exports, the BOT’s MPC meeting (February 26), Fed officials’ remarks, policies of US president Donald Trump, and foreign fund flows. The US economic data that warrant close monitoring include January Durable Goods Orders, New Home Sales, Personal Income and Outlays, PCE/Core PCE Index, GDP report for 4Q-2024 (2nd estimate), plus Weekly Jobless Claims. Close attention must also be paid to Eurozone’s January CPI, and Japan’s January Retail Sales and Industrial Production.
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