Thailand Stocks Rally, Inflation Caps Upside

Thailand’s SET50 Index climbed 1.2% to 983 around midday on Wednesday, rebounding after two subdued sessions. Sentiment improved as U.S. stock futures surged following President Trump’s decision to delay a contentious escort operation in the Strait of Hormuz and upbeat earnings from major tech firms. Meanwhile, factory activity in Thailand expanded for a 12th straight month in April, though growth moderated amid a slowdown in output, new orders, and buying levels. Gains were capped, however, by fresh data showing consumer inflation in Thailand rose 2.89% in April, marking the highest level since February 2023 and nearing the upper end of the central bank’s 1%–3% target, amid mounting risks from Middle East tensions. Industrial services, process industries, and logistics advanced, with notable movers including Advanced Info Service (1.5%), Airports of Thailand (2.4%), Asset World Corp. (2.9%), and Berli Jucker (3.6%).

Thailand’s SET50 Index lost around 0.5% in early Thursday trade, hovering near 966 after gains in the prior session. Sentiment weakened after the central bank left its policy rate unchanged at 1% on Wednesday, but cautioned that fallout from the Middle East war could slow domestic economic growth this year to 1.5%. Inflation is also expected to rise while credit conditions remain subdued. In the U.S., the Fed held rates steady for a third meeting, though four officials dissented. Locally, markets are on track for a second straight monthly decline, down about 0.2% so far, after a steep fall in March. Energy minerals, consumer services, and retail trade provided support even as producer manufacturing and consumer durables weighed. Major laggards included TISCO Financial Group (-3.0%), Airports of Thailand (-2.9%), and Kiatnakin Phatra Bank (-1.25%). Markets will be closed on Friday for National Labor Day.

Thailand's SET 50 Index fell 13 points or 1.3% to 957 on Thursday afternoon, extending losses from the prior session and nearing a three-week low. A sharp drop in U.S. stock futures pressured sentiment, despite Wall Street closing at another high on Wednesday following President Trump’s extension of the U.S.–Iran ceasefire. Traders largely brushed aside supportive developments, including Moody’s upgrade to Thailand’s outlook, as foreign outflows persisted. Concerns also mounted over the country’s fragile growth trajectory, expanding just 2.4% last year and lagging regional peers. Meanwhile, Finance Minister Ekniti Nitithanprapas noted that policy space is limited, with public debt at 66% of GDP, close to the 70% ceiling, raising fears it may need to be lifted. Industrial services, process industries, transport, and consumer services led the decline. Major laggards included Siam Cement (-7.7%), Thai Oil (-3.9%), Gulf Development (-3.4%), and Delta Electronics (-3.3%).