SET Index Fluctuates Amid Fed's Steady Rates and Record Gold Prices
The Stock Exchange of Thailand shows resilience with institutional buying, while gold prices hit an all-time high following the Federal Reserve's announcement.
On Thursday, the Stock Exchange of Thailand (SET) index rose above 1,200 points, before easing back and finishing in negative territory.
The index reached this mark for the third consecutive day amid positive market sentiment following the Federal Reserve's decision to hold interest rates steady at 4.25-4.50%.
Gold prices surged to a record high following the announcement, with market analysts highlighting expectations of future rate cuts by the Fed.
Rakpong Charoenpong, senior vice-president of KGI Securities (Thailand), stated that the Fed's indication of possible interest rate reductions was a key driver of the positive sentiment in the market.
Continuing strength in the Thai baht against the US dollar also played a role, leading to increased buying of large-cap stocks perceived to still have attractive valuations.
The Federal Reserve's dot plot chart reaffirmed its plans for two rate cuts of 0.25% each within the current year while lowering its GDP growth forecasts.
Concerns about inflation in 2025 were raised by ASL Securities, which reported that the Fed anticipates higher inflation despite the overall economic confidence expressed in its statements.
This optimistic outlook continued to positively influence market responses.
In international trade, the United States is preparing to implement a reciprocal tariffs policy from April 2, a development of importance as the US represents a significant export market for Thailand.
In response, Thailand’s Commerce Ministry is brainstorming adjustments to its import tax structure and opportunities to increase purchases from the US, including products such as aircraft, soybeans, and corn.
Locally, ASL indicated that institutional buying power through window dressing techniques is expected to persist until the end of the first quarter.
The SET's short-term resistance level has been set at 1,200 points, with the next target being 1,230 points.
Asia Plus Securities noted adjustments in the US GDP growth forecast to 1.70% for 2025, accompanied by lower inflation predictions for subsequent years.
Following the Fed's indications of potential rate cuts, gold prices reached an unprecedented high of US$3,051, with forecasts suggesting the possibility of further increases.
Hua Seng Heng highlighted the next resistance level for spot gold prices at $3,070 and support at $3,020.
In Thailand, domestic gold prices are supported at 48,200 baht per baht-weight with a resistance level of 48,700 baht.
The SET reported that companies listed both on the main bourse and the Market for Alternative Investment paid out a total of 594 billion baht in dividends for their financial performances in 2024, a slight increase compared to the previous year.
The energy and utility sectors led with payouts of 170 billion baht, followed by banking at 107 billion, and information and communication technology at 53.6 billion baht.
The SET stated that despite economic fluctuations, these sectors have maintained solid performance, providing substantial dividends to shareholders.
Over the last decade, the payout of dividends from listed companies has increased at an average annual rate of 4.01%.
Even as net profits for 2024 saw a slight decline to 869 billion baht, profitability among listed firms remains high, with 67.8% keeping positive earnings.
The highest dividend payouts were recorded in May 2024, reaching 217 billion baht, while the next significant payout period is anticipated in August and September, accounting for approximately 24.3% of total annual dividends.
According to the SET, while the SET index has declined to levels not seen since the pandemic, strong earnings from listed companies present opportunities for investors considering dividend stocks at lower prices.
The index reached this mark for the third consecutive day amid positive market sentiment following the Federal Reserve's decision to hold interest rates steady at 4.25-4.50%.
Gold prices surged to a record high following the announcement, with market analysts highlighting expectations of future rate cuts by the Fed.
Rakpong Charoenpong, senior vice-president of KGI Securities (Thailand), stated that the Fed's indication of possible interest rate reductions was a key driver of the positive sentiment in the market.
Continuing strength in the Thai baht against the US dollar also played a role, leading to increased buying of large-cap stocks perceived to still have attractive valuations.
The Federal Reserve's dot plot chart reaffirmed its plans for two rate cuts of 0.25% each within the current year while lowering its GDP growth forecasts.
Concerns about inflation in 2025 were raised by ASL Securities, which reported that the Fed anticipates higher inflation despite the overall economic confidence expressed in its statements.
This optimistic outlook continued to positively influence market responses.
In international trade, the United States is preparing to implement a reciprocal tariffs policy from April 2, a development of importance as the US represents a significant export market for Thailand.
In response, Thailand’s Commerce Ministry is brainstorming adjustments to its import tax structure and opportunities to increase purchases from the US, including products such as aircraft, soybeans, and corn.
Locally, ASL indicated that institutional buying power through window dressing techniques is expected to persist until the end of the first quarter.
The SET's short-term resistance level has been set at 1,200 points, with the next target being 1,230 points.
Asia Plus Securities noted adjustments in the US GDP growth forecast to 1.70% for 2025, accompanied by lower inflation predictions for subsequent years.
Following the Fed's indications of potential rate cuts, gold prices reached an unprecedented high of US$3,051, with forecasts suggesting the possibility of further increases.
Hua Seng Heng highlighted the next resistance level for spot gold prices at $3,070 and support at $3,020.
In Thailand, domestic gold prices are supported at 48,200 baht per baht-weight with a resistance level of 48,700 baht.
The SET reported that companies listed both on the main bourse and the Market for Alternative Investment paid out a total of 594 billion baht in dividends for their financial performances in 2024, a slight increase compared to the previous year.
The energy and utility sectors led with payouts of 170 billion baht, followed by banking at 107 billion, and information and communication technology at 53.6 billion baht.
The SET stated that despite economic fluctuations, these sectors have maintained solid performance, providing substantial dividends to shareholders.
Over the last decade, the payout of dividends from listed companies has increased at an average annual rate of 4.01%.
Even as net profits for 2024 saw a slight decline to 869 billion baht, profitability among listed firms remains high, with 67.8% keeping positive earnings.
The highest dividend payouts were recorded in May 2024, reaching 217 billion baht, while the next significant payout period is anticipated in August and September, accounting for approximately 24.3% of total annual dividends.
According to the SET, while the SET index has declined to levels not seen since the pandemic, strong earnings from listed companies present opportunities for investors considering dividend stocks at lower prices.
