Surprise rate cut sets tone for Q4

PUBLISHED : 19 Oct 2024 at 06: 31 An electronic screen of stock indices at a brokerage. (Bangkok Post file image) The hot concern the past week was the policy interest rate cut by the Bank of Thailand on Wednesday. The relocation stunned the market, with the SET index rising 20 points that afternoon. On Friday it pressed above 1,500 for the veryfirst time because August2023 Most market individuals were not anticipating the Monetary Policy Committee (MPC) to make a relocation till its last conference of the year in December. But the 5-2 vote in favour of a cut of 25 basis points (bps) sentout a clear signal. As a effect, rate-sensitive stocks skyrocketed throughout the board consistingof financing, possession supervisors, residentialorcommercialproperty and energy plays. Easing financial policy likewise triggered the baht to compromise after high gratitude earlier. We anticipate the index this week to relocation sideways up, topped by mental resistance at 1,500 points (plus or minus 15 points). Following the current blue chip-driven rally, technical signals are tighteningup while second-, 3rd- and fourth-tier stocks will mostlikely gain more trading interest. However, profits releases by banks that began late last week and continue into this week will mostlikely turn market attention towards third-quarter results of noted companies, especially those in the genuine sector. We preparefor the return of 2 patterns: a shift towards private business plays from financialinvestment styles, and more varied stock choice or broader market breadth. The latter will deal muchbetter chances to lookfor alpha returns throughout revenues season for
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