Bangkok: Thai stocks surged past the 1,400-point mark, while the baht showed significant strengthening, falling below 32 baht to the dollar. The movement in Thai financial markets follows global trends after US President Donald Trump signaled a potential resolution to the US-Iran conflict.
According to Thai News Agency, the SET Index opened at 1,410.69 points, marking an increase of 27.72 points from the previous day's closing level of 1,382.97 points. By 11:06 AM, the index stood at 1,400 points, up 17.63 points or 1.27%. Mr. Veerawat Virojphoka, Assistant Managing Director of FSS International Securities, noted on the "Investment Minute" program that Trump's statement contributed to a more favorable investment climate. Asian stock markets saw increases of 1-6%, with the Korean market rebounding strongly. The Thai market followed suit, rebounding by about 2%, or nearly 30 points. Additionally, oil prices have dropped to around $80 per barrel, and reports indicate the G7 countries may release oil from strategic reserves to further lower prices.
Mr. Poon Panichpibul, Money and Capital Market Strategist at Krungthai GLOBAL MARKETS, Krungthai Bank, highlighted that the baht opened at 31.77 per dollar, strengthening from the previous day's 32.08 per dollar. This was influenced by the weakening US dollar and rising gold prices. Trump's reiteration of a potential resolution in the Iran conflict has eased concerns about the Middle East, boosting US stock market expectations of a possible Federal Reserve interest rate cut.
Despite the positive developments, the situation remains uncertain, with a 40% probability that tensions between the US, Israel, and Iran will not escalate. The Thai baht's recent movements indicate higher-than-normal volatility, with an expected 24-hour trading range of 31.55-31.85 baht/dollar.