On January 2, the Thai stock market opened at 1,400.21 points and moved into negative territory, closing the morning at 1,384.62 points, a decline of 15.59 points or 1.11%. The market reached a high of 1,399.35 points and a low of 1,383.71 points, with a trading value of 11.53 billion baht.
Rakkapong Chaisuparakul, Senior Director of Research and Strategy at KGI Securities (Thailand), explained that the Thai stock index remains within a narrow range as investors await significant economic developments in mid-January. The subdued trading follows similar trends seen on December 30, 2024, the last trading day of the previous year, where the market closed down 0.09% due to investor caution.
Key factors influencing market sentiment include concerns about potential "Trade War 2.0" under incoming U.S. President Donald Trump, anticipated U.S. monetary policies, and domestic spending momentum tied to the implementation of the Easy e-Receipt measure later in the month.
The slight decline in the Thai market aligns with marginal losses in U.S. stock indices on December 31. Despite this, no significant negative drivers have been identified, suggesting the movements reflect portfolio adjustments after a strong performance by U.S. equities throughout 2024.
Rakkapong noted that while short-term market stability persists, investors are closely monitoring global and domestic economic conditions. There may also be moderate pressure from redemptions of LTF (Long-Term Equity Funds), but the impact is expected to be limited as many LTFs purchased in 2019 are likely still underperforming, encouraging investors to hold their positions rather than sell.