Thailand's benchmark stock index is on course to again surpass the key psychological level of 1,600 points this month, supported by improving economic prospects, continued foreign fund inflows and easing energy risks, say analysts.Suwat Sinsadok, managing director of Globlex Securities, expects the Stock Exchange of Thailand (SET) index to trade in a range of 1,620-1,630 points in July, mainly due to better economic prospects for the second half of the year compared with the first six months.
The consumption stimulus "Thais Help Thais" co-payment scheme should prop up the economy in the third quarter, he said.
Foreign funds are likely to continue flowing into Thailand thanks to domestic political stability, while energy risks have eased, both in terms of price and supply shortage, with conflicts in the Middle East softening.
Mr Suwat said the baht has been relatively stable, moving in a range of 32-33 to the US dollar. Meanwhile, the electronics sector has performed well, which should propel the country's exports for the rest of the year.
"Given these factors, I believe it won't be difficult for the SET index to top 1,600 points," he said, adding Thai GDP growth is projected to expand by more than 2% in the final nine months of the year, supporting 2026 GDP growth of over 2%.
