Thai Stock Market Hits 3-Year High as Investors Eye More Stimulus to Boost Investment and GDP

The Thai stock market surged nearly 2% in the afternoon session to 1,598.57 points, just slightly below the key resistance level of 1,600 points, which would be the highest level since early 2023. The rise was supported by the Banking, Construction, Energy and Transportation sector, while investors are monitoring the Thai cabinet meeting on Tuesday for more stimulus measures to boost GDP and investment. Bualuang Securities wrote after the closing of the morning session that the Thai stock market saw a strong rebound in the morning session, driven by significant buying in large-cap stocks, particularly GULF, DELTA, and banking groups. These purchases supported the index, with the move likely a result of investors buying back equities after strong selling pressure at the end of trading last Friday due to the MSCI Index portfolio adjustment. At the same time, energy stocks with exposure to oil prices also experienced gains, following an upswing in global oil prices, attributed to the prevailing uncertainty surrounding the ongoing peace negotiations between the U.S. and Iran. The rally in energy stocks provided further support to the Thai stock index, enabling it to advance in contrast to most other Asian stock markets, which saw declines this morning after broad gains in the previous session. Looking ahead, Bualuang forecasts that the Thai bourse will likely continue to trend positively in the afternoon, with the potential to test the initial resistance at 1,600 points and a support level at 1,580 points. Ekniti Nitithanprapas , Deputy Prime Minister and Minister of Finance, revealed to ‘ Kaohoon ’ that there are positive signs for Thailand as both analysts and the private sectors have begun raising their GDP forecasts, although the economy continues to face volatility due to geopolitical tensions, which have triggered an energy crisis and elevated costs, while also dampening consumer purchasing power and affecting household well-being. He emphasized that the government is not complacent with the circumstances and is currently striving to drive Thailand’s economy forward through increased investment. This strategy is intended not only to bolster short-term GDP growth but also to enhance the country’s long-term economic potential. A recent government mission to France, during which officials met with President Emmanuel Macron and groups of French investors, aimed at strengthening economic cooperation and investing in future industries. The meetings made it evident that there is significant interest from foreign investors wanting to invest in Thailand. Nevertheless, Ekniti noted that while certain government policies are beginning to take effect, it will require some time before Thailand’s economic engines are fully up and running, given the current volatility. The Ministry of Finance will not revise its own GDP projections in the near term, as adjustments are made according to a set schedule and will depend on a reassessment of the economic situation. Regarding the Stock Exchange of Thailand, the deputy PM addressed recent analyst upgrades for the SET Index, which is now targeted at 1,600 points. He stated that the government’s focus on investment will restore investor and capital market confidence, as investment is the key driver for strengthening Thailand’s competitiveness. Meanwhile, Blackstone , an American alternative investment management company based in New York City, has announced the closing of its newest Asian private equity fund at $13.1 billion, representing the firm’s most substantial fundraising effort in the region to date. The final amount surpassed the target by over $3 billion, underscoring increased investor demand for private equity opportunities in Asia. Over the past two years, Blackstone has deployed over $7 billion across a dozen investments in Asian markets, with notable activity in both India and Japan. This fundraise highlights the firm’s expanding footprint and reinforces its strategy of capitalizing on long-term growth prospects across the region.