Investor confidence has risen sharply this week after US September inflation came in lower than expected, fuelling optimism that the Federal Reserve may cut interest rates at its meeting later this week.
According to Asia Plus Securities (ASPS), US headline inflation in September rose by only 3% year-on-year and 0.3% month-on-month, leading markets to price in a 98.3% probability of a 0.25% rate cut — a move that has further encouraged fund inflows into risk assets globally.
Sentiment also improved on signs of progress in US-China trade talks, as well as in negotiations between Thailand and Cambodia, both of which could help ease regional tensions.
Foreign investors were net buyers of Thai equities last week, totalling 7.7 billion baht, reflecting renewed confidence in emerging markets.
However, analysts warn of possible “sell-on-fact” pressure after Oct 30 if trade talks between Washington and Beijing fail to deliver further breakthroughs, especially with US President Donald Trump’s tariff hearing scheduled for Nov 5.
Adding to the optimism, the recent Thailand-Cambodia peace accord, observed by Trump, was signed successfully and is expected to reduce border tensions.
This development, coupled with progress toward a new US-Thailand trade agreement, is expected to further strengthen investor sentiment in the coming weeks, said ASPS.
On the domestic front, Finansia Syrus Securities (FSS) said shares of Delta Electronics (Thailand) (DELTA) surged by more than 10% on Monday, hitting a high of 231 baht a share and providing a strong lift to the Stock Exchange of Thailand (SET) Index.
FSS anticipates DELTA’s fourth-quarter revenue rising 20% quarter-on-quarter and 67% year-on-year, driven mainly by its fast-growing data centre business — both in the AI and non-AI segments.
The firm’s fee income is projected to account for 5-6% of total revenue, with management targeting 15-20% annual growth in 2026 as data centre expansion accelerates.
Newly listed Masstech Link (MASTEC) made a strong debut on the SET, opening at 1.78 baht, up 22.7% from its initial public offering price of 1.45 baht, buoyed by positive market sentiment.
The company imports and distributes engineering products and provides integrated design, installation, and maintenance solutions — a sector poised to benefit from Thailand’s ongoing infrastructure and clean energy investments.
During the morning session, the SET Index climbed to a high of 1,345.86 points, up 31.95 points, before closing at 1,330.19 points, an increase of 1.24%.
Wilasinee Boonmasungsong, research director at Globlex Securities, said that domestically the government’s stimulus programmes — including the “Khon La Khrueng Plus” co-payment scheme and “Teaw Dee Mee Kuen” travel campaign — are expected to boost year-end consumption.
The Energy Ministry will also launch four major clean-energy projects in November, including community solar farms and agricultural solar pumps, representing over 50 billion baht in investment.
The Bank of Thailand projects GDP growth of 1.5% in the third quarter before easing to 1.3% in the last three months.
That will bring full-year growth to 2.2%, supported by public spending and a tourism recovery.
In commodities, gold prices retreated after a nine-week rally to below US$4,100 an ounce on Monday, as easing US-China trade tensions shifted demand away from safe havens.
However, JPMorgan and Goldman Sachs remain bullish, forecasting that gold will exceed $5,000 per ounce by 2026-2027, supported by central bank buying and a lower-rate environment.