Thai Loan-Service Stocks Surge in Anticipation of Easy Rates Environment

Loan service stocks in Thai’s financial industry surged on Monday following market’s anticipation that inflation has passed its peak.

As of 11:23 BKK time on January 9, 2023, the share price of Muangthai Capital Public Company Limited (SET: MTC) rose THB3.25 or 8.78% to THB40.25 per share.

Ngern Tid Lor Public Company Limited (SET: TIDLOR) rose THB2.25 or 7.83% to THB31.00 per share.

Srisawad Corporation Public Company Limited (SET: SAWAD) rose THB3.75 or 7.81% to THB51.75 per share.

Saksiam Leasing Public Company Limited (SET: SAK) rose THB0.25 or 4.07% to THB6.40 per share.

Heng Leasing and Capital Public Company Limited (SET: HENG) rose THB0.06 or 1.90% to THB3.22 per share.


Capital Nomura Securities (CNS) stated that the surge came after the U.S. 10-year bond yields edged lower to 3.56% from previously 3.8-3.9%, indicating that inflation might have peaked and that the Federal Reserve could ease its hawkish stance. Meanwhile, domestic household income starts to increase as the Thai economy recovers.


Additionally, an easy interest rates environment would benefit these loan service stocks due to lower interest fees they have to pay to the bank while their loan interest rates to customers were capped at a certain threshold.