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Business Times
2 days ago
- Business
- Business Times
Thai asset rally set to extend on tariff relief, foreign inflows
[NEW YORK] The Thai baht's rally this quarter looks poised to extend, fuelled by easing trade tensions and a resurgence of foreign interest in local equities. Malayan Banking forecasts the baht will strengthen to 31.5 per US dollar by year-end, while Bank of America projects a higher move to 31.0, a level not seen since March 2021. The local currency traded 0.1 per cent lower at 32.369 per US dollar on Monday (Aug 11). Thai markets are closed for a holiday on Monday and Tuesday. The baht has emerged as Asia's top performer this quarter, buoyed by the tariff agreement with Washington that has brightened the outlook for Thai exports. Easing worries about domestic politics and expectations of another interest-rate cut by the Bank of Thailand this week may also sustain capital inflows, bringing Thai stocks closer to a bull market. 'We are keeping a medium-term positive view on the baht, expecting that both equity and bond inflows can somewhat stay supported on further Bank of Thailand rate easing and tariff clarity,' said Alan Lau, a currency strategist at Maybank in Singapore. Local stocks have rebounded more than 18 per cent from a low in June as foreign funds return. That's put the benchmark SET Index among the top-performers globally this quarter. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Thailand's export outlook has improved after US President Donald Trump decided to lower tariffs on the nation's goods to 19 per cent from 36 per cent. The Finance Ministry raised its growth forecast for this year as it lifted projections for foreign shipments. Since April, the US dollar-baht has traded under its 100-day moving average within a descending channel that may see the pair approaching the 31.50 level. Given the bearish momentum, the pair could test the sub-32 level, and a close below the July low of 32.108 will increase the chances of this occurring. Equity flows Global funds turned buyers of local shares this quarter after three straight quarters of outflows. They have purchased US$640 million of Thai equities on a net basis since the start of July. 'Most companies' stocks still have very attractive valuations with better-than-expected earnings so far this year,' said Varorith Chirachon, an executive director at SCB Asset Management, the nation's largest private money manager with about US$53 billion of assets. Chirachon expects the key stock index to hit 1,320 at year-end. That's 4.8 per cent higher than the gauge's close on Friday. To be clear, risk of an economic slowdown in the second half remains as frontloaded orders end and US tariffs take effect. Uncertainty over the future of suspended Prime Minister Paetongtarn Shinawatra also lingers. Constrained domestic demand could counter the risk of fading exports in the second half, 'resulting in a stable current account surplus position and baht appreciation pressure', said Claudio Piron, co-head of Asia FX and rates strategy at Bank of America. BLOOMBERG
Bangkok Post
2 days ago
- Business
- Bangkok Post
Thai asset rally set to extend on tariff relief, foreign inflows
The Thai baht's rally this quarter looks poised to extend, fuelled by easing trade tensions and a resurgence of foreign interest in local equities. Malayan Banking forecasts the baht will strengthen to 31.5 per dollar by year-end, while Bank of America projects a higher move to 31.0, a level not seen since March 2021. The local currency traded 0.1% lower at 32.369 per dollar on Monday. Thai markets are closed for a holiday on Monday and Tuesday. The baht has emerged as Asia's top performer this quarter, buoyed by the tariff agreement with Washington that has brightened the outlook for Thai exports. Easing worries about domestic politics and expectations of another interest-rate cut by the Bank of Thailand this week may also sustain capital inflows, bringing Thai stocks closer to a bull market. 'We are keeping a medium term positive view on the baht, expecting that both equity and bond inflows can somewhat stay supported on further Bank of Thailand rate easing and tariff clarity,' said Alan Lau, a currency strategist at Maybank in Singapore. Local stocks have rebounded more than 18% from a low in June as foreign funds return. That's put the benchmark SET Index among the top-performers globally this quarter. Thailand's export outlook has improved after US President Donald Trump decided to lower tariffs on the nation's goods to 19% from 36%. The Finance Ministry raised its growth forecast for this year as it lifted projections for foreign shipments. Since April, dollar-baht has traded under its 100-day moving average within a descending channel that may see the pair approaching the 31.50 level. Given the bearish momentum, the pair could test the sub 32 level, and a close below the July low of 32.108 will increase the chances of this occurring. Equity flows Global funds turned buyers of local shares this quarter after three-straight quarters of outflows. They have purchased $640 million of Thai equities on a net basis since the start of July. 'Most companies' stocks still have very attractive valuations with better-than-expected earnings so far this year,' said Varorith Chirachon, an executive director at SCB Asset Management, the nation's largest private money manager with about $53 billion of assets. Mr Varorith expects the key stock index to hit 1,320 at year-end. That's 4.8% higher than the gauge's close on Friday. To be clear, risk of an economic slowdown in the second half remains as frontloaded orders end and US tariffs take effect. Uncertainty over the future of suspended Prime Minister Paetongtarn Shinawatra also lingers. Constrained domestic demand could counter the risk of fading exports in the second half, 'resulting in a stable current account surplus position and baht appreciation pressure,' said Claudio Piron, co-head of Asia FX and rates strategy at Bank of America.
Free Malaysia Today
02-07-2025
- Business
- Free Malaysia Today
Bursa marginally higher on heavyweight buying, upbeat outlook
KUALA LUMPUR : Bursa Malaysia opened marginally higher on Tuesday, supported by continued buying in selected heavyweights amid optimism over the economic outlook, an analyst said. At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.90 of a point, or 0.06%, to 1,533.86 from Monday's close of 1,532.96. The benchmark index had opened 1.03 points higher at 1,533.99. The broader market was positive, with 183 gainers beating 119 decliners. A total of 258 counters were unchanged, while 1,814 were untraded and 13 suspended. Turnover stood at 186.42 million shares worth RM79.79 million. Malacca Securities Sdn Bhd said the local bourse was likely to remain firm, tracking the upbeat performance on Wall Street, supported by the FBM KLCI's undemanding valuations and window-dressing activities. 'We maintain a positive stance on the construction and utilities sectors, supported by foreign direct investment (FDI) inflows into the data centre segment. 'Also, with Tenaga Nasional's capital expenditure extending into the second half of 2025, we believe this will benefit power infrastructure specialists and cable manufacturers,' it said in a note. On the broader market outlook, the firm said traders this week would monitor the US unemployment rate, non-farm payroll data, and a speech by US Federal Reserve chair Jerome Powell later tonight. Among the heavyweights, Malayan Banking rose 2.0 sen to RM9.72, Tenaga Nasional advanced 14 sen to RM14.52, while Public Bank and IHH Healthcare were unchanged at RM4.31 and RM6.82, respectively. CIMB fell 3.0 sen to RM6.76. In active trade, Sapura Energy, NexG and Magma added half-a-sen each to 4.0 sen, 37.5 sen and 49.5 sen, respectively. SFP Tech slipped half-a-sen to 19.5 sen, while Pharmaniaga rose 1.0 sen to 14.5 sen. On the index board, the FBM Emas Index climbed 14.88 points to 11,462.65, the FBMT 100 Index rose 13.61 points to 11,243.37, and the FBM Emas Shariah Index advanced 24.86 points to 11,463.10. The FBM 70 Index gained 50.55 points to 16,450.16, while the FBM ACE Index added 6.83 points to 4,476.76. By sector, the Financial Services Index eased 2.65 points to 17,647.93, the Industrial Products and Services Index slipped 0.55 of a point to 153.28, while the Plantation Index advanced 10.67 points to 7,360.87 and the Energy Index edged up 0.51 of a point to 735.79.
Malay Mail
01-07-2025
- Business
- Malay Mail
Bursa edges up on heavyweight support, brighter outlook lifts mood
KUALA LUMPUR, July 1 — Bursa Malaysia opened marginally higher on Tuesday, supported by continued buying in selected heavyweights amid optimism over the economic outlook, an analyst said. At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.90 of a point, or 0.06 per cent, to 1,533.86 from Monday's close of 1,532.96. The benchmark index had opened 1.03 points higher at 1,533.99. The broader market was positive, with 183 gainers beating 119 decliners. A total of 258 counters were unchanged, while 1,814 were untraded and 13 suspended. Turnover stood at 186.42 million shares worth RM79.79 million. Malacca Securities Sdn Bhd said the local bourse was likely to remain firm, tracking the upbeat performance on Wall Street, supported by the FBM KLCI's undemanding valuations and window-dressing activities. 'We maintain a positive stance on the construction and utilities sectors, supported by foreign direct investment (FDI) inflows into the data centre segment. 'Also, with Tenaga Nasional's capital expenditure extending into the second half of 2025, we believe this will benefit power infrastructure specialists and cable manufacturers,' it said in a note. On the broader market outlook, the firm said traders this week would monitor the US unemployment rate, non-farm payroll data, and a speech by US Federal Reserve Chair Jerome Powell later tonight. Among the heavyweights, Malayan Banking rose 2.0 sen to RM9.72, Tenaga Nasional advanced 14 sen to RM14.52, while Public Bank and IHH Healthcare were unchanged at RM4.31 and RM6.82, respectively. CIMB fell 3.0 sen to RM6.76. In active trade, Sapura Energy, NexG and Magma added half-a-sen each to 4.0 sen, 37.5 sen and 49.5 sen, respectively. SFP Tech slipped half-a-sen to 19.5 sen, while Pharmaniaga rose 1.0 sen to 14.5 sen. On the index board, the FBM Emas Index climbed 14.88 points to 11,462.65, the FBMT 100 Index rose 13.61 points to 11,243.37, and the FBM Emas Shariah Index advanced 24.86 points to 11,463.10. The FBM 70 Index gained 50.55 points to 16,450.16, while the FBM ACE Index added 6.83 points to 4,476.76. By sector, the Financial Services Index eased 2.65 points to 17,647.93, the Industrial Products and Services Index slipped 0.55 of a point to 153.28, while the Plantation Index advanced 10.67 points to 7,360.87 and the Energy Index edged up 0.51 of a point to 735.79. — Bernama
Malay Mail
30-06-2025
- Business
- Malay Mail
Bursa Malaysia opens higher, riding positive sentiment and buying in heavyweights
KUALA LUMPUR, June 30 — Bursa Malaysia extended last week's gains to open higher on Monday, supported by continuous buying in selected heavyweights as investors remain positive on the economic outlook, analysts said. At 9.12am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.41 points, or 0.55 per cent, to 1,536.57 from Thursday's close of 1,528.16. The benchmark index opened 5.25 points higher at 1,533.41. The broader market was positive, with 319 gainers thumping 119 decliners, 321 counters were unchanged, while 1,680 were untraded and 102 suspended. Turnover stood at 206.93 million shares worth RM128.65 million. Malacca Securities Sdn Bhd said the local bourse is likely to trade higher today mirroring Wall Street's upbeat performance, in conjunction with undemanding valuations on the key index. 'Moreover, we favour the construction and utility sectors, given their potential to benefit from Malaysia's foreign direct investment in data centres and ongoing infrastructure developments across the country. 'The latter is further supported by Tenaga Nasional capital expenditure rollout, we understand that another 66 per cent of its RM10 billion allocation is expected to be utilised by year-end,' it said in a note. Among the heavyweights, Malayan Banking dropped 2.0 sen to RM9.79, Public Bank and CIMB each gained 1.0 sen to RM4.35 and RM6.81, respectively. Tenaga Nasional grew 22 sen to RM14.48 and IHH increased 3.0 sen to RM6.75. Among the most active counters, EA ticked up half-a-sen to 1.0 sen, NexGram and NexG both remained unchanged at 1.5 sen and 36 sen, respectively. Nova MSC and Digistar each flat at 6.0 sen and 4.0 sen, respectively. On the index board, the FBM Emas Index rose 78.13 points to 11,476.93, the FBMT 100 Index added 76.88 points to 11,258.24, and the FBM Emas Shariah Index gained 111.63 points to 11,452.76. The FBM 70 Index garnered 179.42 points to 16,450.08, while the FBM ACE Index improved 18.01 points to 4,492.77. By sector, the Financial Services Index grew 17.57 points to 17,754.67, the Industrial Products and Services Index edged up 0.68 of a point to 152.66, the Plantation Index climbed 13.73 points to 7,342.75, and the Energy Index bagged 3.08 points to 735.76. — Bernama
