Thai stock market reacts positively to US debt ceiling agreement

TUESDAY, MAY 30, 2023

The SET Index moved in positive territory throughout Tuesday’s trading session due to buying pressure in electronics, banks, and real estate stocks.

The market was reacting to US President Joe Biden and House Speaker Kevin McCarthy reaching a final agreement on a deal to raise the US debt ceiling, according to Globex Securities Co Ltd.

On Monday, the Stock Exchange of Thailand (SET) Index, which reflects trading activities, experienced positive movement due to buying pressure in the electronics, banking, and property sectors following the US debt ceiling agreement.

The SET Index closed at 1,540.97 points, up 10.13 points or 0.66%. Foreign trading value was 37.76 billion baht, down 274.17 million baht. The Thailand Futures Exchanges (TFEX) market had 14,789 contracts, and the bond market experienced a decrease of 1.68 billion baht.

The US stocks, oil, gold market and money market were closed on Tuesday (May 30) Ito commemorate Memorial Day. Japan reported that the unemployment rate for April had dropped by 2.6% from the previous 2.8% in March, adjusted for seasonal variations.

Meanwhile, Thailand received 1 million Chinese tourists between January and May 18 of this year, after China reopened its borders.

The Fiscal Policy Office (FPO) revealed that Thailand's economy in April was supported by steady expansion in the tourism sector.

The consumer confidence index increased for the 11th consecutive month and reached its highest level in 38 months.

Domestic tourists reached 21.3 million, a 27.4% year-on-year increase, while 2.18 million foreign tourists visited Thailand, up by 644% year on year.

Japan has revealed that it will activate an alert system for missile launches and will shoot down any objects that pose a threat to Japanese territory. This comes after reports that North Korea is preparing to launch missiles and release satellites between May 31 and June 11 of this year.


China's Ministry of Commerce has demanded that Japan rectify its wrongdoing and return to the original state after Japan implemented export control measures.

Russia, meanwhile, has issued an arrest warrant for US Senator Lindsey Graham over his comments regarding the war in Ukraine.

The World Bank has stated that the Thai government needs to increase long-term revenue collection in order to meet the growing public expenditure demands resulting from the impact of an ageing society.

Today's market trends

The SET Index is expected to fluctuate sideways on Wednesday, lacking new factors to impact the market. Investors are closely watching the negotiations among the eight Thai coalition parties on Wednesday afternoon. The index is projected to range between 1,535 and 1,545 points.

Investment recommendations:

- Stocks to consider due to an increase in tourist numbers: AOT, BAFS, AAV, BA, MINT, CENTEL, ERW, SPA

- Dividend-paying stocks: TISCO, INTUCH.

- Stocks related to mega-trends: BE8, BBIK, GABLE

- Stable stocks: EA, WAVE.

- Growth stocks (in Eastern Economic Corridor): AMATA WHA ORI

Stocks with strong investment fundamentals: PJW, XO