Stock market analysts welcomed Pichai Chunhavajira as the new finance minister, saying the former Stock Exchange of Thailand (SET) chairman is expected to actively oversee the capital market and push forward economic stimulus as the 2024 fiscal budget is ready for disbursement.
Rakpong Chaisuparakul, senior vice-president at KGI Securities (Thailand), said on Monday that Mr Pichai could be quite active on the digital wallet stimulus scheme and on the oversight of Thailand's financial markets.
KGI's head of research Suchot Tirawannarat said the appointment of Mr Pichai brought positive sentiment to the bourse as he is expected to pursue policies that could strengthen supervision of short selling and program trading.
Mr Pichai, a former board member of the Bank of Thailand from 2014 to 2017, resigned from the role of chairman of the SET's board of governors effective as of last Thursday. The 76-year-old energy veteran was named an advisor of Srettha Thavisin, then prime minister, in September 2023 and he became the 18th SET chairman in early February.
Asia Plus Securities (ASPS) said the cabinet reshuffle, especially the appointment of the finance minister and the deputy finance minister, reflects the government's attempt to push forward the 10,000-baht digital wallet scheme.
The digital wallet committee meeting this week will probably discuss the handout storage, sources of funds, systems and anti-corruption measures.
"The government will push forward stimulus measures and investment budget disbursement, boosting state spending and the 10,000-baht digital handout stimulating consumption. As a result, GDP growth is projected to improve in the second half," it added.
On April 26, His Majesty the King endorsed the 2024 budget bill worth 3.48 trillion baht, including an investment budget of 700 billion baht in the remaining five months before the 2024 fiscal year ends on Sept 30.
"The government is expected to push forward disbursement of an investment budget of 1.6 trillion in the 17 months of 2024-2025 fiscal years," said ASPS. "Now that the 2024 budget is ready for disbursement, it would boost the economy and have a positive sentiment on the SET index."
Domestic-play stocks, particularly those in commerce such as Berli Jucker (BJC), CP All (CPALL), Central Retail Corp (CRC) and Home Product Centre (HMPRO), as well as contractors and construction material firms Ch Karnchang (CK), Sino Thai Engineering and Construction (SETC), Siam Cement (SCC), Siam City Cement (SCCC) and TIPCO Asphalt (TASCO), are set to be the major beneficiaries of the latest political development.