New government boosts confidence in Thai stocks

Equity strategists are raising their year-end estimates for the Stock Exchange of Thailand (SET) index, citing improving domestic political stability and likely interest rate cuts under the new Bank of Thailand governor that could lift corporate earnings and investor sentiment.

- NUNTAWUN POLKUAMDEE

Apichat Poobunjirdkul, senior strategist at Tisco Securities, said the formation of a new government and the arrival of anew central bank governor at the start of this month have reinforced market confidence.

Although the government only has four months in office, the inclusion of respected technocrats in key ministries is seen asa constructive move. If policy implementation proves effective and aligns well with the central bank, Mr Apichat expects sustained market support for the rest of the year.