Bangkok: Analysts anticipate a significant rise in the Thai stock index, projecting a surge of 1,300 points this year, driven by optimism surrounding the new government's economic initiatives.
According to Thai News Agency, Mr. Suwat Sinsadok, Managing Director of Globlex Securities Co., Ltd., shared insights on the "Investment Minutes" program on Channel 9 MCOT, highlighting the "Anutin I" government's introduction of economic ministers from external sources. This move has garnered positive reactions from the business sector and investors, who are impressed by the expertise of the prospective ministers. Mr. Sinsadok believes that easing market concerns about domestic politics, rising US stock markets, and declining interest rates in both Thailand and the US will contribute to the Thai stock index reaching the 1,300 points mark within the year.
The government has swiftly implemented economic policies, such as the "Half-Half" program, with more measures anticipated. The economic cabinet, lauded for its skill and experience, is considered the best in decades. With limited time to govern before the next election in the second quarter of 2026, the government is under pressure to demonstrate its performance in boosting the economy, resulting in positive trends in retail stocks and other sectors tied to the domestic market.
Additionally, the baht has shown its strongest performance in four years. However, it is expected not to appreciate beyond 31 baht per US dollar, primarily due to external factors like the Bank of Thailand's intervention rather than domestic economic strength. The baht is anticipated to return to its previous depreciation within a month.