Thailand’s index gains 1.5%, hitting 1,501.96 points, a peak not seen since October 18, 2024

Thailand’s index gains 1.5%, hitting 1,501.96 points, a peak not seen since October 18, 2024

Thailand’s SET 50 Index Hits 14-Month High Amid Political and Economic Developments

Thailand’s benchmark SET 50 Index surged 1.5% to 953 points on Wednesday, marking its highest level since November 2024, driven by optimism following the Bhumjaithai Party’s decisive victory in the recent general election. The ruling party, led by Prime Minister Anutin Charnvirakul, secured 191 seats in the 500-member lower house, raising hopes for a stable coalition government and policy continuity. This political clarity bolstered investor confidence, with commercial services, consumer durables, and industrial sectors leading the rally. Top performers included True Corp (+3.1%) and Bumrungrad Hospital (+2.4%) according to market data.

The index’s 14.91% gain over the past four weeks reflects broader market optimism, though it remains 13.34% below its level from a year earlier. Analysts attribute the recent rebound to reduced political uncertainty and government initiatives, including a planned “corporate value enhancement program” aimed at restoring investor confidence according to market analysis. However, challenges persist. The index has fallen 23% this year amid political tensions, including a crisis triggered by a leaked audio recording involving Prime Minister Paetongtarn Shinawatra and Cambodian leader Hun Sen.

Foreign investor sentiment remains mixed. While net outflows of THB 117.56 billion were recorded in the first seven months of 2024, the Thai baht’s strength against the U.S. dollar—driven by regional currency trends and gold prices—has partially offset outflows. The SET’s forward price-to-earnings (P/E) ratio of 14.3 times, above the Asian average, suggests undervaluation relative to regional peers.

Looking ahead, forecasts remain cautious. Trading Economics projects the SET 50 to trade at 855.99 points by the end of the current quarter and 769.12 in 12 months, reflecting ongoing macroeconomic and political risks. Investors will closely monitor the government’s economic stimulus measures and the effectiveness of reforms to stabilize the market.

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