On Friday at 3:34 PM (Bangkok time), the share price of Srisawad Corporation Public Company Limited (SET: SAWAD) surged by 7.62% or THB 2.00 to THB 28.25, with a trading value of THB 413.20 million.
Muangthai Capital Public Company Limited (SET: MTC) increased by 6.82% or THB 2.25 to THB 35.25, with a trading value of THB 454.39 million.
According to Krungsri Securities (KSS), stocks associated with the ‘declining interest rate’ theme have shown strong performance and are now leading the market, as political uncertainty is expected to temporarily limit the government’s ability to enact fiscal policies.
As a result, monetary policy is anticipated to play a larger role, and there is an increased likelihood that the Bank of Thailand’s Monetary Policy Committee will consider a rate cut at its meeting on December 17.
This expectation has been reflected in the recent drop in yields on Thai government bonds with maturities of one, two, three, and five years, signaling growing market confidence in a shift towards lower interest rates. In turn, investor capital has rotated into equities that are directly poised to benefit from an easing monetary environment.
Krungsri identified leasing companies—namely MTC and SAWAD—as key beneficiaries, as lower borrowing costs are set to directly improve their financial position. The utilities sector, particularly power producers such as GULF and BGRIM, is also expected to gain.
