On Monday, Thailand’s SET Index closed the morning session at 1,442.62 points, declining 4.43 points or 0.31%, with a trading value of THB 29.33 billion. Mr. Vathan Jitsomnuk, Director of Strategy Analysis at Pi Securities, stated that the Thai stock market moved in line with regional markets, following the escalation of the Middle East conflict.
The situation intensified after Iran-backed Houthi militants launched attacks on Israel, with reports emerging that the U.S. Department of Defense is preparing to launch a ground operation in Iran. These developments have pushed oil prices higher and sustained them at elevated levels. Brent crude oil jumped by 2.4% to $108 per barrel, while WTI increased by nearly 2%.
The Thai government is currently absorbing the impact of oil prices through the Oil Fuel Fund; however, if prices remain high, it may eventually allow prices to move according to market mechanisms, which could further drive up the cost of goods.
Meanwhile, the technology sector was pressured following the unlikelihood of an interest rate cut. Shares of DELTA declined and dragged the index down by 10-11 points, while the energy and petrochemical sectors benefited from rising oil prices. The overall situation poses inflationary risks and may prompt a downward revision of economic forecasts, noted the brokerage.
Additionally, risks also emerged for the tourism sector to fall short of targets amid increasing travel costs, intensifying risks for the Thai stock market.
As for the outlook this afternoon, Mr. Vathan said the Thai bourse is expected to remain in negative territory due to the lack of positive factors. The support level is identified at 1,430 points, with resistance at 1,460 points.
The top five securities by total trading value were as follows:
- DELTA: trading value of THB 2.74 billion, closed at THB 265.00, down by THB 11.00 or 3.99%
- PTTEP: trading value of THB 2.61 billion, closed at THB 162.50, up by THB 3.00 or 1.88%
- IVL: trading value of THB 1.55 billion, closed at THB 24.50, up by THB 1.50 or 6.52%
- PTT: trading value of THB 1.50 billion, closed at THB 35.25, up by THB 0.75 or 2.17%
- GULF: trading value of THB 1.28 billion, closed at THB 58.00, down by THB 0.25 or 0.43%
