Thai stocks closed up 18.36 points, boosted by the Monetary Policy Committee's interest rate cut, fueling market speculation that the Fed will cut interest rates in September.

Thai stocks closed at 13 points today, August 1,277.43th, up 18.36 points, with a trading value of 70,067 billion baht. This followed the Monetary Policy Committee's 0.25% interest rate cut, which boosted the market. The Fed is expected to cut rates at its September meeting, its first since late last year. Stay tuned for the Fed's annual meeting on August 21-23.

Stock Exchange of Thailand (SET) Index On August 13, it closed at 1,277.43 points, an increase of 18.36 points (+1.46%), trading value 70,067.54 million baht, foreigners net selling 6,655.96 million baht, funds buying net 7,778.30 million baht.

Today, there were 10 securities traded on the big board (BIG LOT), 13 items, TIDLOR had the highest value of 8,157.77 million baht, average price of 17.25 baht per share.

Mr. Sorapon Weeramethikul, Assistant Managing Director Head of Investment Strategy Team, Kasikorn Securities The Thai stock market rose nearly 20 points (+1.5%) today, in line with most regional markets, which saw gains of 1%. This was primarily due to expectations that the US Federal Reserve (Fed) would likely cut interest rates at its September meeting for the first time since late last year. This follows the July CPI inflation figure of 2.7%, which was lower than the 2.8% forecast, and last Friday's lower-than-expected employment figures, leading the market to revisit expectations of a US interest rate cut.

Today, the Bank of Thailand (BOT) also cut interest rates by 0.25%. We estimate that every 25 bps of the BOT Rate Cut, if transmitted through government bond yields of approximately 10 bps, represents an upside of approximately 25 points to the index, based on the Earning Yield Gap theory. Furthermore, short-term fund flows continue to flow into emerging markets.

However, two factors should be monitored: the Fed's annual meeting in Jackson Hole on August 2-21 and domestic politics, which will determine whether fund flows will continue or stop.

Kasikorn Securities still favors the petrochemical and finance sectors, recommending PTTGC and SAWAD. Another sector is the real estate sector, which is also benefiting from lower interest rates, recommending SPALI and AP.

The stock market trend for tomorrow (14 August) is expected to fluctuate within a range, with support at 1,260 points and resistance at 1,285 points.

5 securities with the highest trading value

• THAI trading value: 4,435.88 million baht, closing at 16.10 baht, up 1.40 baht.
• DELTA trading value 3,997.53 million baht, closed at 154.00 baht, an increase of 10.00 baht
• KBANK trading value 2,529.71 million baht, closed at 169.00 baht, increased by 1.00 baht
• KTB trading value 2,404.65 million baht, closed at 24.40 baht, an increase of 0.30 baht.
• BDMS trading value 2,177.66 million baht, closed at 22.90 baht, an increase of 0.80 baht.

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