web DeskAnalysts estimate that the Fed’s 0.5% interest rate cut will have a positive effect on the Thai stock market, while domestic factors from economic stimulus measures that are gradually being rolled out will have a positive effect on Domestic Play stocks that are bottoming out.
Mr. Wichit Arayaphisit, investment strategist at Liberator Securities, gave an interview on the Investment Minute program on Channel 9 MCOT HD about the case of the US Federal Reserve (Fed) reducing the interest rate by 0.50% to 4.75-5.00%, the first interest rate cut in over 4 years, saying that it was higher than the 0.25% analysts had estimated. As for the policy interest rate forecast or Dot Plot, Fed officials signaled another 0.50% interest rate cut by the end of this year, contrary to analysts’ estimates that it would increase by 0.50% this year. In addition, Fed Chairman Jerome Powell also stated that the US economy was expanding strongly and inflation was slowing down and moving to 2%. There were no signs that the US economy w
as not entering a recession, causing the US stock market to fluctuate, reaching a record high during the day before slowing down and closing in the red.
For the impact on the Thai stock market, it is still seen as a positive factor, while there are additional domestic factors to help drive the economy. It is in the process of accumulating power and waiting to see the SET Index breakout in the next phase. Therefore, investing in Thai stocks is at a time when stock prices have adjusted down to the lowest point (Bottom out), which is a positive sign that stock prices are coming back up, especially stocks that will benefit from the recovery of the domestic economy (Domestic Play) such as the finance group, the banking group, and the retail, electricity, and hospital groups. Therefore, we must wait to see the government measures that are gradually being released.
For short-term speculative investment, stocks that benefit from the weak baht will be the electronics group, the tourism group, including government po
licies that are preparing to revive tourism stimulus measures for both Thai and foreign tourists.
Source: Thai News Agency
