The Stock Exchange of Thailand (SET) index rebounded for a third consecutive day to briefly touch 1,200 points on Thursday, as gold continued its surge to a fresh record high after the Federal Reserve held interest rates at 4.25-4.50% as expected.
Rakpong Charoenpong, senior vice-president of KGI Securities (Thailand), said the positive sentiment was supported by the Fed's policy rate direction as the central bank signalled its readiness to cut interest rates more than expected.
Meanwhile, the baht continued to strengthen against the US dollar, encouraging buying of large-cap stocks that still have attractive valuations.
The Fed's dot plot chart reaffirmed plans for two rate cuts of 0.25% each this year, unchanged from its previous forecast three months ago. The Fed lowered its GDP growth projection, but indicated higher inflation for 2025, according to ASL Securities.
"However, the Fed's statement of confidence in the economy caused the market to respond positively. Investors should still monitor Donald Trump's trade tariff policy, expected to become effective on April 2," the brokerage noted.
The US is preparing to implement a reciprocal tariffs policy from April 2. The US is a top export destination for Thailand.
Thailand has no concrete approach for the planned tariffs yet other than the Commerce Ministry preparing a plan to adjust the import tax structure and purchase additional products from the US such as aircraft, soybeans and corn.
As for domestic factors, the buying power of institutional investors through the window dressing method should remain through the end of the first quarter, said ASL, adding short-term SET resistance is at 1,200 points, followed by 1,230 points for the next resistance point.
Asia Plus Securities said the Fed cut its US GDP growth forecast to 1.70% for 2025, 1.80% in 2026 and 1.80% in 2027. Inflation forecasts were adjusted down for the years to 2.8%, 2.2% and 2.0%, respectively.
The signal of two more rate cuts this year drove the gold price to an all-time high of US$3,051.
Hua Seng Heng predicts the next resistance level for the spot gold price is $3,070, with a support level of $3,020. Domestic prices have a support level of 48,200 baht per baht-weight and a resistance level of 48,700 baht.
In a related development, the SET revealed listed companies on the main bourse and the Market for Alternative Investment have collectively paid out 594 billion baht in dividends for their financial performance in 2024, a slight increase from the previous year.
The energy and utility sector led the pack with 170 billion baht in dividend payouts, followed by banking at 107 billion, then information and communication technology at 53.6 billion.
"Despite economic fluctuations, these three sectors remain strong, delivering substantial dividends to their shareholders," the SET said in a statement.
Over the past 10 years, dividend payouts from listed companies have grown at an average annual rate of 4.01%.
"While net profits in 2024 slightly declined from the previous year to 869 billion baht, they remain at a high level," according to the bourse.
In May 2024, companies paid the highest dividend tallying 217 billion baht. The next dividend payout season was in August and September, accounting for 24.3% of total annual dividends.
"Although the SET index declined in 2024 to its lowest level since the pandemic, listed companies continue to post solid earnings, presenting an opportunity for investors to accumulate dividend stocks at lower prices," the statement noted.
According to the bourse, 67.8% of listed companies in Thailand (627 firms) remain profitable. Dividend stocks remain a compelling option for investors seeking passive income, noted the SET.
"Investing in dividend stocks isn't just about chasing high yields -- it is about evaluating a company's fundamentals, industry outlook, and economic trends, as well as timing your entry wisely," according to the bourse.