SET Rebounds by 10pts after Asian Markets Bounce Back

Thai stocks rebounded Tuesday, moving in the same direction as regional markets, in anticipation of a Cabinet meeting on voluntary gasoline subsidies.

As of 11.53 hrs. local time in Thailand, the SET Index rose 9.88 points or 0.63% to 1,569.09, with a total trading volume of THB22,816 million.

Maybank Securities (Thailand) (MST) stated that it is anticipated that today’s Cabinet meeting will address an effort to ask for cooperation from oil refiners.  More discussions will be undertaken with oil refineries, which are urged to contribute a portion of their revenues to the Oil Fuel Fund and so contribute to the reduction of retail oil prices.

Currently, the Oil Fuel Fund is losing THB96 billion, the largest loss in its history. This issue would necessitate thorough legal consideration and pertinent statistics.

Maybank anticipates that today’s meeting will develop an initial framework. Regarding the numbers, there may not be a definitive conclusion that remains a cloud over the investment future for the refinery group.

In addition, the Cabinet may authorize more tourism promotion to lure tourists from abroad. This is viewed as beneficial for tourism stocks, and investors are advised to gradually accumulate AOT, MINT, CENTEL, and ERW.