Thai stocks jump 40 points in response to Vayuphak 1 and new cabinet

Thai stocks were lively in the afternoon, adjusting up almost 40 points, breaking through 1,400 points, following news that the Vayuphak Fund is preparing to open for sale on September 16. The baht strengthened in response to the economic stimulus policy of the new cabinet. It is expected that the GDP in Q4/67 may grow by almost 5 percent. At 15.48, the SET index was at 1,405.63 points, up 40.14 points (+2.94%). Mr. Kawee Chukitkasem, Head of Research and Content, Phatra Securities Co., Ltd. (Public Company Limited), the stock market that adjusted upwards received foreign capital inflows after the baht strengthened and news that the Vayuphak Fund is preparing to open for sale on September 16th, including responding to the new cabinet with economic stimulus policies, including a digital money budget of over 100 billion baht to be distributed to vulnerable groups in September, which will result in the Thai economy growing, contrary to the global economy. Meanwhile, the Vayuphak Fund, which will invest 150 bil lion baht in Thai stocks, will have a positive effect on the capital market. There will also be other stimulus policies such as the real estate and tourism sectors. It is expected that this year, Thailand's GDP will expand by almost 5 percent in the fourth quarter, and the positive effects will continue into the first quarter of next year. In the first 3 months, it is expected that the government will continue its work. Various lawsuits will not affect stability during this period. Mr. Laworn Sangsanit, Permanent Secretary of the Ministry of Finance, revealed that the Ministry of Finance is preparing to issue a prospectus to offer investment units of Vayuphak 1 Mutual Fund Type A with a total budget of 150 billion baht, open for retail investors to subscribe during 16-20 September 2024 and then open for institutional investors to subscribe during 18-20 September 2024. The results of the investment unit allocation will be known on 23 September. The Vayuphak Mutual Fund will start investing in the Thai stock m arket from 1 October 2024 onwards. The investment units will be available for trading no later than 10 October 2024. Currently, Vayupak Fund 1 has a net asset value of over 300 billion baht, an increase of almost 15 percent after the fund was transformed in 2013. Most of the investment is in listed equity instruments and some in short-term debt instruments. In the past, the Ministry of Finance received dividends from Vayupak Fund 1 of over 40 billion baht. The fund is managed by Krungthai Asset Management Public Company Limited and MFC Asset Management Public Company Limited. Deputy Prime Minister and Finance Minister Pichai Chunhavajira said the increase in the stock index was a good thing and something to be happy about, which came from many factors, partly due to the clear political situation. Mr. Pichai also revealed that he had been contacted by the Ministry of Labor regarding the proposal to consider tax measures to help entrepreneurs who will be affected by the minimum wage increase of 400 baht nati onwide on October 1st. The Ministry of Finance is currently waiting to consider the details and expects to reach a conclusion soon. Krungsri Securities (KSS) assesses the current domestic investment picture to be quite similar to the past, combining with internal politics to move forward, assessing the direction of the Thai stock market for the rest of this year in a positive way. It estimates that the new money that is entering the Thai stock market will mainly come from 2 parts, most of which should come in during the 4th quarter, as high as around 120-170 billion baht (Vayupak Fund 100-150 billion baht, combined with ThaiESG Fund money, effective for 3 months, 6-7 billion baht per month), followed by ThaiESG money for the whole year in 2025, another 78 billion baht, will support SET moving towards the target at the end of this year, estimated at 1,540 points. Source: Thai News Agency