Thai Equity Markets Likely to Rise further on Thursday
The Asian stock markets started the week on a positive note, with the Thai stock market bouncing higher on Wednesday. The SET (Stock Exchange of Thailand) finished higher, with gains from the finance, property, resource, service, and technology sectors. For the day, the index rallied 18.36 points or 1.46 percent to finish at 1,277.43.
The Federal Reserve is widely expected to lower rates by at least a quarter point next month, according to the CME Group's FedWatch Tool, which indicates a 93.8 percent chance of such a move in September. This optimism about an interest rate cut by the Federal Reserve is also reflected in the early strength on Wall Street.
The global forecast for Asian markets remains positive in 2025, supported by solid profit growth forecasts, moderate interest rates, and resilient technology sector performance amid geopolitical and trade uncertainties.
Key points supporting this positive forecast include:
- Asian equities, such as South Korea's KOSPI, have shown a strong rebound with a 40% increase over four months post-tariff shocks. However, long-term structural improvements in corporate profitability are needed to sustain higher valuations.
- Despite tariff-related caution and political risks, investors show enthusiasm for Asian markets over the U.S., with expectations of accelerating profit growth into 2026. The recovery has been robust after initial tariff-driven downgrades.
- Interest rates in Asia remain relatively stable with inflation within target ranges, supporting a cautious but constructive investment environment. Central banks remain watchful but the risk of aggressive rate hikes is moderated by slowing growth signals.
- Technology stocks face some headwinds due to sector rotation and tariff exposure but remain a critical growth driver in the market. Defensives and cyclicals show resilience, while continued innovation and earnings improvements underpin the longer-term bullish sentiment on tech.
- Globally, elevated valuations and a strong U.S. dollar may pose risks, but Asian markets benefit from a more sanguine global economy and investor rotation toward growth markets outside the U.S.
In Thailand, specific stocks such as Thailand Airport, Advanced Info, and PTT showed gains on Wednesday, with Thailand Airport gathering 0.63 percent, Advanced Info expanding 1.35 percent, and PTT jumping 1.56 percent.
The volume for the day was 10.714 billion shares worth 70.067 billion baht, with 270 gainers and 231 decliners, and 160 stocks finishing unchanged.
However, the International Energy Agency projected oversupply in the market this year due to surging supply from oil producers, which could potentially impact the crude oil prices, with West Texas Intermediate crude for September delivery currently at $62.62 per barrel.
In conclusion, the positive outlook for Asian markets in 2025 is driven by solid corporate earnings prospects, controlled inflation and interest rate environment, and persistent investor interest in growth sectors including technology despite short-term geopolitical and trade policy challenges.
Investors might find opportunities in the stock-market, with the Federal Reserve's expected rate cut next month boosting optimism and the global forecast for Asian markets remaining positive in 2025, supported by solid profit growth, moderate interest rates, and resilient technology sector performance.
Specific stocks in Thailand, like Thailand Airport, Advanced Info, and PTT, demonstrated gains on Wednesday, indicating potential growth in the investing sector.
