Fed raises rates by 0.25% to 3.75–4.00%; brokers say it pressures growth stocks, favor banks, insurance, energy

Share2Trade··USTH·Read original
4▲16 ▼1Impact / 5
Summary · why it matters

The US Federal Reserve voted unanimously 12–0 to raise interest rates by 0.25% to a range of 3.75–4.00%, its first hike since 2023, and signaled it may raise once more this year. Its latest projections put the year-end 2026 rate at about 4.1%, with 2027 likely holding steady before a possible cut in 2028. Several brokers assess the meeting as negative for the Thai stock market in the short term, because US Treasury yields and the dollar are likely to strengthen, which could pressure foreign capital flows and share prices, especially growth stocks and those with high P/E ratios, amid inflation still above the 2% target and oil prices holding above 100 dollars a barrel, forcing the market to cope with a prolonged period of high interest rates. Tisco Securities estimates the SET will move in a range of 1,570–1,660 points, with support at 1,570–1,580 points and resistance at 1,630 and 1,660 points, and highlights the energy and commodities group such as PTTEP, PTT, SPRC, TOP, IVL, PTTGC, CPF, TFG, GFPT, TVO, SCGP and SCCC; the banking and insurance group such as KBANK, KTB, TTB, BLA and TLI; and the AI, infrastructure and power group such as HANA, AMATA, WHA, GULF, EGCO, ADVANC, TRUE and STECON. Meanwhile, Krungsri Securities favors domestic and defensive plays with clear revenue and cash flow, especially BDMS and BCH, and warns that expensive, rate-sensitive stocks such as DELTA could come under pressure if the Fed signals more sustained rate hikes than the market expects.

Impact on assets 30

Financials▲ · 5 stocks
Thai Life Insurance PCL
TLI
± MixedMonetaryrelevance

Included in Tisco's banking and insurance group seen as favored amid the Fed's rate hike; no company-specific development.

Energy Transition & Power Demand▲ · 5 stocks
PTT Public Company Limited
PTT
▲ PositiveMonetaryrelevance

Named in Tisco's favored energy and commodities group as the Fed's hike and high oil prices support the sector.

Materials▲ · 3 stocks
Consumer Staples▲ · 3 stocks
GFPT Public Company Limited
GFPT
▲ PositiveMonetaryrelevance

Tisco highlights GFPT in the energy/commodities group favored as high rates and oil above $100 support commodity plays.

Energy▲ · 2 stocks
Cloud & Digital Infrastructure▲ · 2 stocks
Artificial Intelligence▲ · 2 stocks
Health Care▲ · 1 stocks
Aging Population▲ · 1 stocks
Electrification & Mobility▼ · 1 stocks
Semiconductors▲ · 1 stocks
Critical Materials & Supply Chain▲ · 1 stocks
Indorama Ventures PCL
IVL
▲ PositiveMonetaryrelevance

Named in Tisco's favored energy and commodities group as the Fed's hike and high oil prices support the sector.

Climate Adaptation & Water▲ · 1 stocks