Thailand’s SET Index closed at 1,516.01 points, increased 25.61 points or 1.72%, with a trading value of THB 95.59 billion. The analyst stated that the Thai market surged due to a 0.25 percentage point rate cut from the Monetary Policy Committee (MPC), which surprised the market that had expected the committee to maintain the policy rate. This bolsters the Thai economy and encourages lending from banks to groups like SMEs.
The analyst expects the fund inflows to potentially continue, as foreign net buying has risen to THB 60 billion year-to-date.
For tomorrow, the analyst expects the Thai market to move sideways.
The Bank of Thailand (or MPC) has voted 4 to 2 to cut the policy rate by 0.25 percentage points from 1.25 to 1.00 percent. The BOT last reduced its benchmark interest rate by 25 basis points, setting it at 1.25% during its December 2025 meeting in a unanimous decision. Reuters Poll estimated that the Thai central bank will maintain its rate at 1.25% in the February meeting, with this year’s only cut expected to come in the second quarter.
Thai Finance Minister Ekniti Nitithanprapas proposed a “Three Arrows” strategy to expedite Thailand’s economic recovery effort in 2026, focusing on infrastructure investment, digital transformation, and fast-tracking investment.
South Korea’s Ministry of Industry has sanctioned the merger of olefins plants operated by Lotte Chemical and HD Hyundai. This initiative is supported by a substantial financial package worth $1.3 billion.
The restructuring plan is expected to withdraw about 1.1 million tons of annual production capacity from the market, which aligns with the government’s broader objective to reduce overall capacity by 3-4 million tons.
