Stock Market in Thailand Predicted to Start Day in Positive Territory
The Thai stock market bounced higher again on Wednesday, following the announcement of trade deals by President Donald Trump with Japan and the Philippines. The SET finished sharply higher, with several major Thai companies seeing significant gains.
Key Performers
- BTS Group soared 5.29 percent.
- Siam Commercial Bank added 0.82 percent.
- Krung Thai Bank accelerated 2.36 percent.
- Thai Oil gathered 0.79 percent.
- PTT Group improved 1.40 percent.
- SCG Packaging soared 4.60 percent.
- B. Grimm skyrocketed 6.54 percent.
- PTT Exploration and Production gained 0.86 percent.
- PTT Oil & Retail surged 5.56 percent.
- Energy Absolute rallied 3.57 percent.
- Bangkok Dusit Medical gained 1.93 percent.
- Bangkok Expressway improved 2.80 percent.
- Banpu expanded 2.20 percent.
- Advanced Info increased 1.71 percent.
- Kasikornbank collected 0.95 percent.
- Charoen Pokphand Foods rose 0.44 percent.
- True Corporation jumped 2.80 percent.
- TTB Bank perked 0.53 percent.
- Asset World surged 5.00 percent.
- Gulf jumped 4.62 percent.
- CP All Public climbed 2.67 percent.
- Bangkok Bank spiked 2.43 percent.
- Krung Thai Card strengthened 1.79 percent.
Market Indicators
Volume was 10.525 billion shares worth 45.127 billion baht. The index jumped 27.87 points or 2.34 percent to finish at 1,219.62.
The trade surplus of Thailand is expected to be $0.900 billion, with imports expected to climb 17.7 percent on year and exports called higher by an annual 18.9 percent. Thailand will provide June data for imports, exports, and trade balance this week.
Broader Impact
The announcement of trade agreements can generally stabilize or improve investor sentiment, potentially boosting stock markets. However, specific impacts might vary based on the details of the deal and the sectors directly affected, such as automotive and electronics.
While specific deals like the U.S.-Japan agreement can have significant impacts on trade and investment, broader regional initiatives and agreements also play a crucial role in shaping the economic landscape and stock market performance across Asia.
For instance, the Regional Comprehensive Economic Partnership (RCEP) brings together many Asian countries, creating a large trading bloc. This could indirectly affect Asian stock markets by promoting regional trade and investment. Similarly, the Indo-Pacific Economic Framework (IPEF) is a broader U.S. initiative aimed at economic cooperation in the region, which could influence trade dynamics and investor confidence over time.
U.S.-Philippines Trade Relations
While there hasn't been a recent major trade deal specifically between the U.S. and the Philippines, the Philippines is an important player in Southeast Asia. The lack of a specific major trade deal might not have a direct, significant impact on Asian stock markets compared to larger economies like Japan.
Upcoming Trade Deadline
The trade deadline for the U.S. is approaching, spurring expectations of further trade agreements. As these developments unfold, it will be interesting to see how they impact the Asian stock markets, particularly in Thailand.
[1] U.S.-Japan Trade Agreement [2] U.S.-Japan Trade Agreement: Timeline
- The US-Japan Trade Agreement could indirectly affect the performance of the technology and finance sectors in Asian stock markets, as Japan is a major player in these industries.
- The U.S.-Japan Trade Agreement, if expansive in its coverage, could potentially boost investments in the technology, business, and finance sectors across Asia, particularly in countries with strong economic relations with Japan.
