SET reveals capital market responds better After getting a new government

SET reveals market conditions in August 2023 have improved after the new government. As for the policy statement to Parliament On the economic side, we emphasize accelerating the injection of money into the economy. Expedite measures to use the original budget After GDP in 2Q23 slowed down

Mr. Soraphol Tulyasathien, Deputy Manager, Head of Corporate Strategic Planning Division The Stock Exchange of Thailand revealed that the overall situation of the stock market in August 2023 was a good response. After Thailand successfully established a new government on August 23, 2023, the SET Index rose for six consecutive days at 1,576.67, the highest level since the election on May 14. 66 with the SET Index down to the lowest point at 1,466.93 points and considering the SET Index's Forward PE ratio is slightly lower than the historical average. causing individual investors and institutions in the country to make net purchases for 7 consecutive months

Looking ahead, there are still 3 factors to keep an eye on: the speech of the Federal Reserve Chairman (Fed) late last month; It signals that the long-term inflation target of 2% is still confirmed (from the current 3.2%), while the US economy and labor market continue to slow down more slowly than expected. Causing investors to expect to see the Fed keep interest rates at 5.25-5.50% until the end of the year. In addition, investors are concerned about the slowdown of the Chinese economy. Especially in the real estate sector where some big companies in the industry signal that there is a liquidity problem. While the NESDB The Thai economy in the second quarter of 2023 expanded by 1.8%, slowing down from 2.6% in the previous quarter. This is a result of the contraction in exports.

As for announcing the government's policy to Parliament today In terms of economic policy It can be seen that many policies are accelerating the injection of money into the economy. Because in the second quarter the economic numbers were not that good. In addition, the budget takes time to pass through the House of Representatives. This causes approval to be delayed. Therefore, you will see various measures. to expedite the original budget Budget used for the time being Including reducing various expenses Through the state enterprise mechanism which must be followed up to see if it will have an effect in helping to provide relief to the people during this period Or how much does it help stimulate the economy? As for how much investment money from abroad will flow back in? Must look at the long term The important part is that policies have become more clear since the formation of the government. It should make foreign investors Both the economic and financial sectors Able to adjust the direction of income inve stment strategies more clearly which is seen as likely to be in a better direction

Regarding the Thai stock market situation at the end of August 2023, the SET Index closed at 1,565.94 points, an increase of 0.6% from the previous month. Contrary to other stock indexes In this regard, the industries that have improved better than the SET Index compared to the end of 2022 are technology, finance, consumer goods, and service group

Source: Thai News Agency