Thai leasing company shares rose sharply in early trade on Wednesday after posting better-than-expected first-quarter earnings, and the US Federal Reserve hinted a possible rate pause at its next meeting also boosted sentiment.
As of 11.47 A.M. Bangkok time, the share price of Ngern Tid Lor Pcl. (SET: TIDLOR) rose THB3.15/share, or 13.64%, to THB26.25/share, with a trading value of THB1,038 million.
The share price of Muangthai Capital Pcl. (SET: MTC) rose THB2.25/share, or 6.08%, to THB39.25/share, with a trading value of THB1,219 million.
The share price of Srisawad Corporation Pcl. (SET: SAWAD) rose THB1.25/share, or 2.14%, to THB59.75/share, with a trading value of THB1,150 million.
According to Kasikorn Securities, a rally in leasing equities during the morning session was mainly driven by better-than-expected first-quarter earnings, indicating that the worst is over for businesses. The U.S. Federal Reserve’s potential rate pause also boosted traders’ sentiment, easing pressure on leasing sectors.
Markets are now pricing in an 85% chance of the Federal Reserve holding rates at their current level in June, and the probability of a 25 basis point cut at the July meeting is around 31%, according to the CME FedWatch tool.
Meanwhile, the base case showed three 25 basis point rate cuts in 2023 with the first cut to begin in September.
However, the release of the crucial U.S. Consumer Price Index (CPI) later in the day, the most well-known gauge of inflation, might completely change the dynamics surrounding the market’s pricing of the next Fed interest rates move.