Clear election date pushes SET past 1,700

Economy October 10, 2017 19:28

By Wichit Chaitrong
The Nation

KOBSIDTHI SILPACHAI, the head of capital markets research at Kasikornbank, said that the clear election date announced by Prime minister Gen Prayut Chan-o-cha has improved market sentiment and partly contributed to the stock index rising past 1,700.

The Stock Exchange of Thailand (SET) index on Tuesday surged 0.87 per cent to close at 1,706.95. 

He said when Prayut went to the US recently he promised the election would be held next year but Deputy Prime Prawit Wongsuwarn denied a date had been set, creating confusion.

Now that the timetable has been made clear it has had a positive impact on the stock market while economic fundamentals have not changed much, he said.

He said that although exports have been increasing and the economy continues to expand, the fruits of expansion have not yet reached a majority of people, especially the lower income group.

"Economic growth has not yet broadened," said Kobsidthi.

Another factor relating to the rising stock market is North Korean not firing more missiles. South Korean stock also rose 1.6 per cent yesterday, he said.

Kasikorn Securities predicted the SET index at 1,700 at the end of this year while TISCO securities is even more bullish, forecasting 1,750 by the end of this year.

Prinn Panitchpakdi, CEO of CLSA, agreed the date boosted the SET to its highest since it peaked in 1994.

He predicted the index would stay at 1,700 through the end of the year.