On Friday at 10:31 AM (Bangkok time), the share price of SCB X Public Company Limited (SET: SCB) rose by 1.10% or THB 1.50 to THB 137.50, with a trading value of THB 397.18 million.
Bangkok Bank Public Company Limited (SET: BBL) surged by 0.30% or THB 0.50 to THB 169.50, with a trading value of THB 310.07 million.
Kasikornbank Public Company Limited (SET: KBANK) fell by 0.76% or THB 1.50 to THB 195.50, with a trading value of THB 497.11 million.
Krung Thai Bank Public Company Limited (SET: KTB) lost 1.69% or THB 0.50 to THB 29.00, with a trading value of THB 685.03 million.
TMBThanachart Bank Public Company Limited (SET: TTB) dropped by 1.92% or THB 0.04 to THB 2.04, with a trading value of THB 184.35 million.
Pi Securities noted that the Thai banking sector came under pressure after the Bank of Thailand reduced its policy rate by 0.25% on Wednesday. The move was swiftly followed by KBANK, which became the first local lender to lower its rates, fueling investor concerns over a likely narrowing of net interest margins within the sector.
Despite broad weakness across the sector, stocks such as SCB and BBL registered gains. Both lenders were supported by their attractive dividend yields, with SCB especially standing out as the top-pick stock, offering a dividend yield of 8.5%. Pi Securities maintains a target price of THB 146 for SCB, citing its strong payout as a key strength.
The morning session saw some profit-taking in bank shares following gains on Thursday, but the analyst stressed that this price action does not reflect a change in sector fundamentals. The interest rate cut is not expected to have a significant impact on loan growth, with banks likely to remain conservative in lending due to subdued economic prospects and weak exports expected for next year.
Although the coming election may temporarily stimulate consumer spending, overall economic conditions remain uncertain. With the GDP growth outlook unclear and loan growth likely to remain dull, investors’ shift towards banking stocks is seen as a move for dividend plays.
