Bangkok: Thai stocks turned positive after better-than-expected Q1/2026 GDP figures. Thai stocks opened lower, following Asian markets, but reversed to positive territory later in the morning, in response to the National Economic and Social Development Council (NESDC) reporting better-than-expected GDP growth in the first quarter of 2026.
According to Thai News Agency, the securities analysis department of Krung Thai Xspring Securities Co., Ltd. reported that Thai stocks turned positive in response to the NESDC's announcement of better-than-expected Q1 2026 GDP growth of 2.8%, exceeding market expectations of 2.4%. They believe the higher-than-expected GDP growth will alleviate pressure on the Thai stock market today and be positive for high-capitalization stocks (ADVANC, GULF, AOT, KBANK, CPALL) and banking stocks (BBL, KBANK, SCB).
The Thai stock market opened lower, following the downward trend in global stock markets which began a correction phase. The market was disappointed by the lack of positive progress in discussions between the US and China regarding the tense situation in the Middle East, and remained concerned about the failure of Iran and the US to reach an agreement on various points in negotiations, fearing a potential war.
Mr. Wikit Thirawanarat, Assistant Managing Director of Bualuang Securities, stated that the better-than-expected GDP growth in the first quarter of 2026 is likely due to significant direct investment, particularly the substantial amount of investment promotion applications submitted to the Board of Investment (BOI), and improved exports. This is attributed to the resolution of the US court ruling that President Donald Trump's tariffs were unjustified. Furthermore, the government's upcoming "Thai Helps Thai Plus" stimulus measures, to be discussed at tomorrow's cabinet meeting, are expected to have a positive impact on the second quarter GDP growth, potentially exceeding expectations and boosting consumer spending.
The Thai baht touched its weakest level in two weeks at 32.78 before recovering to 32.73-32.75 baht per dollar this morning (8:30 AM), compared to Friday's closing level of 32.65 baht per dollar.
Kasikorn Research Center reported that the Thai baht continued to weaken this morning, approaching 32.80 baht per dollar. This aligns with the weakening of other Asian currencies and the yuan, which weakened again after the US-China presidential negotiations concluded with less positive signals than the market had expected. Meanwhile, the US dollar continued to strengthen, supported by increased market emphasis on the probability of interest rate hikes this year (though not yet 100% certain). In addition, the decline in global gold prices also negatively impacted the baht. The estimated trading range for the baht today is 32.65-32.85 baht per dollar.
The Gold Traders Association announced that Thai gold prices had decreased in line with the global market. Around 12:00 PM, Thai gold prices changed 13 times, decreasing by 100 baht per baht weight compared to the previous day. Gold bars were selling at 70,300 baht per baht weight, and gold ornaments were selling at 71,100 baht per baht weight.