Bangkok: Thai stocks and gold prices rose, and the Thai baht strengthened, after Trump mentioned negotiations with Iran. Gold prices in Thailand edged higher, with stocks rising more than 21 points this morning. The Thai baht quickly strengthened after US President Donald Trump indicated talks with Iran could delay attacks on power plants and energy infrastructure for five days. However, market uncertainty persisted, causing crude oil futures to rise again. Investors are advised to hold around 40% in cash.
According to Thai News Agency, domestic gold prices edged higher this morning after a sharp drop yesterday. As of 10:08 AM, there have been 11 price fluctuations, both up and down, resulting in a total increase of 600 baht from yesterday's closing price. Gold bars are selling at 67,500 baht, and gold jewelry at 68,300 baht, based on a global gold price of $4,362 per ounce. The Thai baht strengthened to 32.65 baht per dollar, trading at approximately 32.64-32.66 baht per dollar this morning (8:50 AM), compared to yesterday's domestic closing price of 33.00 baht per dollar.
Ms. Kanjana Chokpaisalsilp, Research Executive at Kasikorn Research Center, stated that the Thai baht has been volatile. After touching its weakest level in 10 months at 33.06 baht/dollar yesterday, it strengthened to near 32.10 baht/dollar last night and remains in a stronger range of around 32.64-32.66 baht/dollar this morning (8:50 AM). Meanwhile, the US dollar's recovery remains limited after facing selling pressure last night due to hopes that the unrest in the Middle East might end soon. This followed US President Donald Trump's statement that he had spoken with high-ranking Iranian officials and would delay attacks on Iranian power plants and energy infrastructure. However, Iran later denied this, leaving the situation highly uncertain and suggesting that the baht could weaken further during the day.
For today's trading range, the initial estimate is 32.30-32.80 baht per US dollar. Key factors to monitor include Thailand's February export figures, the situation in the Middle East, the direction of global oil and gold prices, foreign fund flows, and preliminary March PMI figures for the US, Europe, and the UK. Thai stocks recovered from yesterday, rising 21.89 points to 1,419.23 points at 10:19 AM.
Mr. Veerawat Virojphoka, Assistant Managing Director of FSS International Securities, stated that the world continues to face volatility, evident from the rebound in WTI and Brent crude oil futures contracts this morning (March 24th) after plummeting more than 10% at yesterday's (March 23rd) close. Investors are assessing developments regarding the tense situation in the Middle East. He recommends holding around 40% cash, as a prolonged conflict could make market recovery difficult. The cost of oil, petrochemicals, and other raw materials will impact commodity prices, inflation, the cost of living, and corporate performance. Therefore, if negotiations fail to reach a resolution and the war continues, Thai stocks have the potential to fall further. Thus, cash reserves will be crucial for identifying buying opportunities to gradually accumulate stocks during corrections. Stocks to consider are those that have reduced risk from the situation or those with limited impact from energy costs or inflation.