On Thursday, Asia Plus Securities expects the Thai market to trade sideways-down along with the foreign markets’ trend, despite the U.S. inflation reports in April coming in line with expectations, which led traders to believe that the Federal Reserve will no longer cut interest rates. Additionally, the market was also pressured by the rising bond yield, as well as the escalation in the Middle East after the U.S. renewed the attack on Iran, while Tehran moved to close the Strait of Hormuz.
The securities firm set a resistance level for the SET Index at 1,580 points and a support level at 1,550 points for today’s session.
Daol Securities stated that the SET Index may potentially decline due to market consolidation, as it is muddled by multiple factors, such as the escalation in the Middle East, which raised concerns over elevated inflation, and the tech sectors teetering between rebasing and selloff.
As such, the analyst firm estimates that investors will gradually engage in profit-taking after the index surges to a certain level to reduce risk, recommending a selective buy strategy or focus on defensive stocks with resilience against interest rate and inflation volatility.
Yesterday, Thailand’s SET Index closed at 1,563.59 points, decreased 20.55 points or 1.30%, with a trading value of THB 52.78 billion.
