The Stock Exchange of Thailand (SET) index might fall below 1,300 points this year if the government proceeds with its digital wallet handout as the country’s credit rating could be downgraded and corporate borrowing costs would rise, warns One Asset Management (ONEAM).
ONEAM chief executive Pote Harinasuta said among the factors affecting investment this year is the projected US interest rate cut, which could draw capital inflows to the SET.
“We expect Thai interest rates will be cut once or more in the second half of 2024 if the US lowers its rates a lot,” he said.
Meanwhile, geopolitical risks need to be monitored as the Russian-Ukraine war has continued for more than a year, along with the ongoing Israel-Hamas conflict and the ongoing US-China tensions.
“At the moment, geopolitical risks remain acceptable, but hopefully tensions will not accelerate…
