BANGKOK, Thailand – The Stock Exchange of Thailand (SET) surged on Sep 5, closing at 1,404.28 points, up by 38.79 points (+2.84%), with a trading volume of THB 81.74 billion. The index reached a high of 1,406.49 points, marking the highest level in five months, while the lowest point of the day was 1,371.49 points. Out of all listed securities, 435 advanced, 102 declined, and 135 remained unchanged.
Kawee Chukitkasem, Head of Research and Content at Pi Securities, noted that the market’s sharp rise was driven by strong foreign capital inflows following the strengthening of the Thai baht. This momentum was also fueled by news that the Vayupak Fund is set to open for subscription on September 16, as well as positive reactions to the newly formed Cabinet’s economic stimulus policies. The digital wallet initiative, which will distribute over THB 100 billion to vulnerable groups this September, is expected to drive Thailand’s economic growth, in contrast to global economic slowdowns.
The Vayupak Fund, with a value of THB 150 billion, will invest in Thai equities, providing a significant boost to the market. Additionally, other stimulus measures targeting the real estate and tourism sectors are expected to contribute to Thailand’s GDP growth, which is forecasted to reach nearly 5% in Q4 2024. The benefits are anticipated to extend into Q1 2025 as well, with political stability maintained in the short term.
Meanwhile, Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, revealed that the ministry will release a prospectus for the Vayupak Fund 1, offering retail investors the opportunity to subscribe from September 16–20. Institutional investors will be able to subscribe from September 18–20, with the allocation results to be announced on September 23. The fund is expected to begin investing in Thai equities by October 1, with the units being tradable no later than October 10.
Currently, Vayupak Fund 1 holds over THB 300 billion in net assets, an increase of nearly 15% since its transformation in 2013. The fund primarily invests in equities listed on the SET, with a portion in short-term debt instruments. To date, the Ministry of Finance has received over THB 40 billion in dividends from the fund. Krungthai Asset Management and MFC Asset Management serve as fund managers.
Deputy Prime Minister and Minister of Finance, Pichai Chunhavajira, welcomed the positive market performance, attributing it to several factors, including the improved political clarity. He also disclosed that the Ministry of Labor has proposed tax measures to support businesses impacted by the upcoming nationwide minimum wage increase to THB 400, effective October 1. The Ministry of Finance is currently reviewing the details, with a decision expected soon.
Krungsri Securities (KSS) projected a favorable outlook for the Thai stock market for the remainder of the year, driven by key capital inflows, including THB 1.2–1.7 trillion in the fourth quarter alone, primarily from the Vayupak Fund (THB 1.0–1.5 trillion) and the ThaiESG fund, expected to contribute THB 6–7 billion per month for three months. Additionally, ThaiESG’s full-year contribution in 2025 is estimated at THB 78 billion, supporting the SET index to reach its year-end target of 1,540 points. (TNA)
