SET GAINS MOMENTUM AMID ORDERLY ROTATION

Unusually high inflows into bonds in Thailand could provide room for foreign investors to lock in profits and turn to speculate in stocks.

- BUALUANG SECURITIES

Thai shares have been gaining momentum since early September, with the benchmark Stock Exchange of Thailand index climbing above 1,300 points amid an orderly rotation involving key sectors including banking, commerce, tourism, electronics and energy. This was in contrast to the recent downturn, when investors did not immediately enter new sectors after unloading stocks, while some also built short positions.

Key factors influencing market sentiment included anticipation of a Federal Reserve interest rate cut with more cuts to come, which triggered some selling on Thursday. Domestically, political conditions are stabilising, with optimism about reputable external figures in key ministerial roles creating economic quick wins during the expected four-month term of the new government.

Concerning factors include the persistent rise in gold prices from technical speculation, geopolitical jitters and purchases by China's central bank, and unusual baht appreciation compared with regional peers, raising concerns over suspicious transactions — possibly linked to gold exports to Cambodia.