Thailand’s stock market surged nearly 2% in the afternoon session on Thursday, following positive movement in regional and the European markets after the Federal Reserve held interest rates steady last night.
The SET Index rose 26.57 points or 1.93% to 1,406.53 points as of 16:07 BKK time on Thursday, about 30 minutes before the market closes for the day.
A rise in Delta Electronics (Thailand) Public Company Limited (SET: DELTA), the largest company in the exchange based on market capitalization, had an impact on the main bourse for more than 4 points, while other big-cap stocks such as Airports of Thailand (SET: AOT) and Gulf Energy Development (SET: GULF) each pushed the index higher by around 1.50 points.
Only six companies in SET100 Index declined as of now.
The SET Index made a huge jump at the open on Thursday, following the Fed’s decision to nearly the resistance level of 1,400 points. Another push came in the afternoon as the index made another climb over the resistance level.
Yesterday, the US Federal Reserve unanimously agreed to hold its policy rate at 5.25%-5.50%, while addressing that it is still a long way for inflation to achieve a sustainable level of 2%.
Fed Chair Jerome Powell said that the process of getting inflation sustainably down to 2% has a long way to go. As for the next meeting in December, the committee will do what it thinks is appropriate at the time.
In addition, Powell noted that the committee was not considering or even discussing rate reductions at this time, but stated that the risks around the Fed doing too much or too little to combat inflation have become more balanced.
The market is now pricing in a first rate cut by June next year at around 50% chance, up from mid 30% yesterday. Before the Fed announcement, the highest odds for a rate cut was around 35% in July, according to CME FedWatch Tool.