Market Roundup 20 December 2024: Thailand’s SET Index fell 0.90% to 1,365.07

Thailand’s SET Index fell 0.90% to 1,365.07 due to energy and banking pressures. Anticipated market rebound amid oversold conditions and stimulus hopes. Global economic developments also influence market sentiment.

Thai Stock Market Decline

Asian equities declined as investors worried about reduced US interest rate cuts and the Thai index fell below 1,400 points due to market expectations and selling pressure in CP Group stocks.

Thailand’s SET Index closed at 1,365.07, down 12.46 points (0.90%) due to pressure from energy and banking stocks, notably TOP. This hindered market recovery. Analysts anticipate a rebound next week, noting the market’s oversold status and attractive valuation. The positive outlook is bolstered by expected stimulus proposals for the cabinet. Market observers are also focused on AIMC developments related to CPALL and CPAXT, along with upcoming U.S. PCE figures, which could affect market dynamics.

Key Points

• Asian equities declined as investors worried about fewer US interest rate cuts next year. 
• The US Federal Reserve cut interest rates as expected but signaled slower rate cuts in 2025. 
• Central banks in the UK, Japan, China, and Indonesia kept their interest rates unchanged. 
• New Zealand tipped into recession in Q3, while China’s oil consumption is expected to peak by 2027. 
• Nissan is in talks to merge with Honda, and Foxconn is in talks to buy Renault’s stake in Nissan. 
• CATL, the world’s top EV battery maker, is considering a $5 billion listing in Hong Kong. 
• The Thai stock market fell below 1,400 points this week, with CP Group stocks and market expectations of US rate cuts affecting sentiment. 
• Thailand’s Industrial Confidence Index rose in November, and the tourism industry saw strong growth. 

Global Economic and Political Developments

Myanmar’s junta plans elections next year with potential international observers despite ongoing conflicts. China maintained key lending rates to support economic stability, aligning with economists’ predictions. The U.S. economy expanded more in the third quarter than initially thought, growing GDP by 3.1%. Meanwhile, political shifts under Donald Trump impact global economic policies with Republicans opposing his government funding bill and Trump challenging the EU on trade imbalances. These developments highlight dynamic economic and political landscapes worldwide.

Global Market Movements: Other significant developments included SK Hynix completing a deal for a US$958 million grant and loan in US chips, Indonesia considering deep cuts to nickel mining to boost prices, and China’s hottest stock, Pop Mart, rising 370% due to a craze for collectibles.