Shares in Thailand’s property firms rallied on Wednesday after the central bank unexpectedly cut rates. The property sub-index jumped 3.2 percent, the best performing sector on the Thai stock exchange.
“The unexpected rate cut gave a psychological lift to the laggard sector,” said analyst Danai Tunyapisitchai of broker Phillip Securities. “Lower rates fundamentally are positive to property sales and so, we see buyers of shares of blue-chip developers today.”
Shares of Thailand’s largest developer Land & Houses leapt 4.7 percent to 10.10 baht, the highest since Nov. 20. It was the third-biggest percentage gainer on the large cap SET50 index.
Shares of No. 2 developer Pruksa Real Estate jumped 3.4 percent near a one-week high while shares of condominium developer LPN Development rose more than 1 percent, hovering around its highest in a week.
Thailand’s central bank unexpectedly cut its benchmark interest rate a quarter of a point to 2.25 percent on Wednesday. The broader benchmark SET index climbed 1 percent after the interest rate decision.