Thai Stocks Surge on Easing Virus Cases, Economic Stimulus

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Thai stocks surged, boosted by rising optimism about the waning coronavirus outbreak and the government’s new economic stimulus, as trading resumed after a holiday.

The benchmark SET Index rose 6.7% to close at 1,214.95, the highest level since March 11. The gauge has advanced 19% from a low on March 23.

The Thai government is planning new borrowing of 1 trillion baht ($30.5 billion) for its latest stimulus package to counter the economic impact of the coronavirus outbreak. The package is worth about 1.9 trillion baht in total, including 900 billion baht of measures by the Bank of Thailand, according to Finance Minister Uttama Savanayana.

“The market has a positive view on the stimulus package,” said Mayuree Chowvikran, deputy managing director at Yuanta Securities (Thailand) Co. in Bangkok. The baht’s strength may also indicate the return of some foreign funds to Thai equities, she said.

Local authorities on Tuesday reported the smallest number of new coronavirus cases in about three weeks, saying restrictions on daily life are containing the spread of the disease. Prime Minister Prayuth Chan-Ocha has imposed a state of emergency, a curfew and a broad lockdown.

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