％United States Government Bond 10Y
US-10Y
▲ PositiveMonetaryrelevance
Fed signals inflation concerns, pushing US bond yields up.
Impact on stocks 1
Others
SET Index July 2026 closes at 1,623.64 points, up 2% from the previous month
MacroGeopolitics
The SET Index at the end of July 2026 closed at 1,623.64 points, up 2% from the previous month and 28.9% from the end of 2025, supported by continuous foreign capital inflows. However, the escalating conflict in the Middle East led to another closure of the Strait of Hormuz, impacting global spare production capacity and pushing oil prices to 100 dollars per barrel. This prompted the US Federal Reserve Chair to signal concerns over inflation risks remaining above target, putting upward pressure on US bond yields. Additionally, global technology stocks faced a correction after prices had already reflected high earnings expectations, coupled with concerns over the return on investment in AI technology, which reduced demand for computing resources. Mr. Chatchai Tisadoldilok, CFA, FRM, Assistant Manager and Head of Research at the Stock Exchange of Thailand, said that the Thai stock market was relatively limited in its impact from the tech stock correction due to its diverse sector composition and supportive fundamentals in many dimensions. These include the Ministry of Finance raising Thailand's 2026 economic growth forecast from 1.6% to 2.5%, and analysts continuously upgrading earnings estimates for Thai listed companies since the beginning of 2026. Moreover, the average daily trading value of the Thai stock market in July was the highest since March 2022. The combined average daily trading value of SET and mai in July 2026 was 87.397 billion baht, up 105% from the same period last year. As a result, in the first seven months of 2026, the average daily trading value was 69.174 billion baht, up 64.8% year-on-year. Foreign investors were net buyers of 48.864 billion baht, marking the third consecutive month of net buying. From the beginning of the year to the end of July 2026, foreign investors accumulated net purchases of 75.864 billion baht. The forward P/E of the stock exchange at the end of July 2026 was 15.7 times, higher than the Asian stock exchange average of 13 times, while the historical P/E was 17.1 times, higher than the Asian average of 16.4 times. The dividend yield of the stock exchange at the end of July 2026 was 4.1%, higher than the Asian stock exchange average of 2.8%. On the TFEX derivatives market, the average daily trading volume in July 2026 was 563,065 contracts, down 10.7% from the previous month, mainly due to declines in SET50 Index Futures, Gold Online Futures, and Currency Futures. As a result, in the first seven months of 2026, the total average daily trading volume was 554,436 contracts, up 30.2% from the same period last year.
Fed signals inflation concerns, pushing US bond yields up.