The Federal Reserve Board voted 9 to 3 to keep the policy rate at 3.50 to 3.75 percent, signalling no rush to cut rates as inflation remains above target. This prompted markets to scale back expectations for rate cuts this year. US bond yields rose while the dollar strengthened, weighing on risk assets globally including the Thai stock market. The Stock Exchange of Thailand index fell below 1,600 points to close at 1,598. Technology stocks such as Delta Electronics dropped sharply by over 21 baht to close at 264 baht, a change of minus 7.37 percent, dragging the index down by as much as 21 points. Banking stocks remained outperformers, with several brokers recommending accumulation of KBANK, KTB, and BBL, citing benefits from rates staying high, strong earnings, and inexpensive valuations. Foreign investors continued selling for another day, offloading over 1.739 billion baht, but from 1 to 30 July they were still net buyers of 45.244 billion baht. Energy stocks were supported by global oil prices holding at elevated levels, with PTT, PTTEP, and refineries in focus. Brokers such as Krungsri Securities advised portfolio adjustments after the Fed's hawkish signal, suggesting reducing weight in technology stocks and REITs while increasing exposure to banks, energy, and quality stocks. Investors await second-quarter 2026 earnings from listed companies and US economic data, particularly inflation and the labour market, which will influence the Fed's next moves.
Bangkok Bank PCL
PTT Public Company Limited
