NEW PM BRINGS POSITIVE SENTIMENT TO SET

September was a good month for the local stock market.

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The election of Prime Minister Anutin Charnvirakul by MPs drew a positive reaction from investors, especially because key economic ministers — for finance, commerce and energy — are widely respected outsiders.

The return of the “Khon La Khrueng” (Half-Half) co-payment stimulus has sparked hope for the commerce sector and improved economic conditions. Externally, a US interest rate cut and hope for a US-China trade agreement pushed the SET index above 1,300 points, peaking at 1,312.74.

However, the rally ebbed as the month ended with no new catalysts, while concerns about curbs affecting Delta Electronics, the bourse’s most valuable stock, worried investors.

Under new market rules, no single stock can have more than a 10% weighting in the SET100 and SETS50 indices. The weight of DELTA is around 13%, meaning index funds will have to reduce their holdings in DELTA to keep its weight below 10%.

The SET index closed the month at 1,274.17 points, an increase of 3% from the month before. But average daily turnover decreased 14.9% to only 42.5 billion baht.

We still have high hopes for the SET as the country enters the high season for tourism and festive spending, given the extra boost provided by the co-payment scheme that runs from Oct 29 to Dec 31.