Local market bullish on likely Fed rate cut

Brokerages predict further upside

- NUNTAWUN POLKUAMDEE

Thai equities are expected to rise further after the Stock Exchange of Thailand (SET) bounced back to break the key psychological level of 1,300 points on expectations the Federal Reserve will cut interest rates at its meeting this week, coupled with signs of easing global trade tensions.

Nattapon Chansivanon, chief investment officer at UOB Asset Management (UOBAM), said the Thai stock market has turned bullish in anticipation of the Fed's rate move.

He projected the Fed would cut rates three more times this year, including at its meeting on Sept 16-17, bringing the policy rate to 3.75% by year-end, with further cuts next year taking the rate to 3-3.25%.

On the domestic front, the forma tion of a new government and growing expectations of lower rates have attracted foreign fund inflows.