FX.co ★ Thai Stock Market May Extend Friday's Gains

Ahead of the Coronation Day Holiday on Monday, Thailand's stock market has once again seen a surge. This comes after a two-day winning streak where nearly 10 points or 0.7 percent were added. Currently, the Stock Exchange of Thailand is coasting just below the 1,370-point mark, and it is anticipated to rise further on Tuesday. This prediction is based on an upbeat global forecast for Asian markets, with renewed optimism surrounding potential interest rate outlooks. As evidence of this, European and U.S. markets have demonstrated robust growth, and a similar trend is forecasted for Asian markets.

On Friday, the SET concluded on a modest high, as gains arising from resources, technology and service stocks were mollified slightly by waning food and finance companies. The index concluded the day's trading by adding 6.67 points or 0.49 percent at 1,369.92, following trading between 1,364.26 and 1,372.72. With a trading volume of 12.500 billion shares worth 37.541 billion baht, there were a total of 256 gaining stocks, 190 decliners, and 217 stocks that remained unchanged.

Trading activity varied among different companies. Thailand Airport saw a 0.38 percent climb, while Bangkok Bank witnessed a 0.37 percent drop. Other companies like Bangkok Dusit Medical and Bangkok Expressway enjoyed gains of 0.87 percent and 1.82 percent, respectively. However, declines were registered by companies like CP All Public and Charoen Pokphand Foods, with stocks falling by 0.85 percent and 0.98 percent respectively.

The American market saw a positive flow, marking a significant rise in their major averages. The Dow advanced by 176.59 points or 0.46 percent, ending at 38,852.27. The NASDAQ rallied by 192.92 points or 1.19 percent to close at 16,349.25 and the S&P 500 improved by 52.95 points or 1.03 percent, ending at 5,180.74.

Confidence has grown amongst investors that a rate cut is imminent within the next few months. CME Group's FedWatch Tool suggests a predicted 83.5 percent probability of lower rates by the coming September. This renewed optimism is influenced in part by recent relatively dovish comments from Federal Reserve Chair Jerome Powell and weaker than expected job growth last April.

Crude oil futures saw a moderate increase following Saudi Arabia's decision to raise its European and Asian selling prices. West Texas Intermediate Crude oil futures for June were higher by $0.37 or 0.47 percent, closing at $78.48 per barrel. In local news, Thailand is set to release April's consumer price figures, following a 0.47 percent year-on-year decrease in overall inflation and an annual rise of 0.37 percent in the core CPI in March.