SET rebound tops Asia-Pacific markets
Investors buoyed by huge stimulus packages being rolled out worldwide
After a rollercoaster ride, Thailand’s stock market ended the week on a positive note with the biggest rebound of all the Asia-Pacific bourses, as global efforts to combat the Covid-19 pandemic and a rise in oil prices provided a boost of confidence.
The Stock Exchange of Thailand (SET) index rallied by 83.05 points, or 7.95%, to close at 1,127.23 points in turnover worth 93 billion baht. That was down only marginally from 1,128.91 at the end of the previous week, when the index lost 17.9%.
Most large-cap shares saw a double-digit gain across the board, with shares of PTT Exploration and Production Plc (PTTEP) rallying the most, by 15%, followed by GPSC (+14.95%), BAM (+14.86%), PTT (14.56%) and SCC (14.49%).
Policymakers around the world have cut interest rates and pumped liquidity into markets this week in a bid to stave off the economic shock from the virus pandemic, Bloomberg reported.
“US President Donald Trump’s stimulus package and his comment on getting involved in the global price war between Opec and its allies have a psychological effect in boosting hopes of inflation from concerns over deflation,” said Kobsidthi Silpachai, head of capital markets research at Kasikornbank.
The US Senate was debating a US$1 trillion-plus package that would include direct financial help for Americans, relief for small businesses and steps to stabilise the economy.
Still, monetary policy stimulus will have a minimal effect going forward due to the limited policy space, Mr Kobsidthi said.
“Investors will be keeping a close watch on the global death toll of the Covid-19 pandemic.”
Policymakers need to come up with a debt moratorium policy to ease the suffering of businesses affected by lower production output and lockdown measures, he said.
Thailand’s trade statics for February and interest rate decision by the Bank of Thailand’s Monetary Policy Committee will have an impact on the SET’s movement next week, according to KGI Securities.