Thai shares rose 20 points on Tuesday, extending gains from the morning session, in response to the dissolution of parliament announced on Monday.
As of 15.27 hrs. Bangkok time, the SET Index gained 20.59 points, or 1.32%, to 1,576.04 points. Volume was 15,161 million shares worth THB40 billion.
Thai Prime Minister Prayut Chan-O-Cha has dissolved the country’s parliament, according to a decree published in the royal Gazette on Monday, paving the way for a general election in May.
The 4-year term of the Thai parliament was supposed to conclude this Thursday (March 23).
A general election must be held between the 45th and 60th day following the dissolution, as mandated by the electoral regulations.
Deputy Prime Minister Wissanu Krea-ngam stated on Monday that elections, should the House be dissolved on Monday, will be held on May 14. This date has not yet been officially confirmed.
According to Maybank Securities (Thailand) (MST), based on statistics over the past 20 years, the brokerage found that 1-3 months ahead of elections, the stock market usually gains 1.1-3.4%, in line with positive expectations for further economic stimulus policies. Therefore, this is a positive psychology on the Thai stock market.
MST expected the SET today to rebound in a range of 1,540 points support and 1,570 points resistance. Focus on stocks with strong earnings growth potential.
Meanwhile, Krungsri Securities saw the SET Index to rebound and test 1,560 / 1,570 resistance, in-line with regional peers after the Fed, Canada’s central bank, BoE, BOJ, ECB, and Switzerland’s central bank introduced new liquidity measures. However, stay cautious ahead of the FOMC meeting on March 21-22 where the Fed is projected to raise interest rates by 0.25% to 4.75-5.00%.
