Bangkok: The Thai stock market witnessed a significant rally following the announcement of economic policies by the newly formed Bhumjaithai government. Analysts predict short-term stimulus and long-term infrastructure investment will positively impact GDP, with the stock market expected to reach levels between 1,420 and 1,500 points over the next three months. The market experienced an initial surge of 39 points within the first trading hour.
According to Thai News Agency, Mr. Pichai Lertsapongkit, Managing Director of the Securities Business Division at InnovestX Securities, outlined key economic policies of the Bhumjaithai Party. These include a 3-year debt moratorium, the "Half-Price Plus" scheme, a reduction in electricity prices, dialysis centers in every district, and free solar cells, alongside infrastructure development. InnovestX forecasts that a coalition government led by Bhumjaithai could enhance GDP by 0.50%, with a focus on infrastructure providing long-term benefits.
In the event of a coalition between the Bhumjaithai Party and the Pheua Thai Party, economic policies could further boost GDP by 0.12-0.5%. InnovestX highlights the high political stability of the current government, with a majority of around 65%, facilitating the implementation of policies and presenting a positive outlook for investment. While fiscal stability remains moderate, Dr. Ekniti Nitithanprapas, acting Deputy Prime Minister and Minister of Finance, aims to manage the fiscal plan by reducing the budget deficit to no more than 3% by 2030.
Mr. Korapat Worachet, Assistant Managing Director of Krungsri Securities, commented that if the Bhumjaithai Party secures a near-landslide victory in the 2026 general election, it would lead to a stable government capable of implementing economic policies consistently. He projects a potential 8-10% increase in the Thai stock market in the next three months, adjusting the SET index range to 1,420-1,500 points.
Economic stimulus policies, domestic purchasing power, and anticipated government investment are expected to support various stocks. Factors such as increased airport departure fees, the tourism season, and the Chinese New Year momentum indicate strong government support, continuing existing policies like the "Half-Price" scheme and debt relief. As a result, fund flows are anticipated to return to the Thai stock market, which stood at 1,393.81 points, up 39 points as of 10:50 AM.