Brokers projected mixed outlooks for the Thai stock market on Wednesday following weaker-than-anticipated U.S. inflation figures, which have reduced expectations of further Federal Reserve rate hikes. While this could ease upward pressure on the dollar and U.S. bond yields, analysts say gains in the Thai market may remain subdued amid ongoing geopolitical uncertainty in the Middle East.
TISCO Securities expects the Thai benchmark index to rebound, as the lower-than-forecast U.S. inflation data has lessened the case for additional monetary tightening by the Fed, leading to a pause in the dollar’s recent appreciation and a decline in bond yields. However, the firm cautioned that the upside for the Thai stock market is likely to be capped due to uncertainty in the Middle East.
The securities firm set support levels for the SET Index at 1,612 and 1,606 points, and resistance levels at 1,640 and 1,650 points.
Daol Securities noted that the Thai bourse may move within a narrow range, as many investors await further updates regarding developments between Iran and the U.S.—a process that may extend into next week. While U.S. inflation data came in below expectations, the analyst firm also highlighted the potential for profit-taking in Thai big-cap stocks, whose prices have recently advanced.
Yesterday, Thailand’s SET Index closed at 1,626.03 points, decreased 1.87 points or 0.11%, with a trading value of THB 82 billion.
