Brokers project negative outlooks for the Thai stock market on Thursday, as the selloffs in overseas technology equities may potentially weigh investors’ confidence. Furthermore, market participants continue to monitor the oil prices and the ramification of the Federal Reserve’s interest rate decision last night.
Tisco Securities expects negative sentiment from a decline in Asian tech equities to drag the Thai benchmark down in the morning session, especially affecting the electronics sector. DELTA, in particular, may come under further scrutiny following earnings that fell short of expectations.
In contrast, the recent uptick in oil prices is seen as a potential support for the energy and petrochemical sectors, providing some mitigation to the broader market downside. However, the recent escalation of conflict in the Middle East, combined with a surge in the 30-year U.S. Treasury yield to new highs, is expected to exert additional downward pressure on equities.
The securities firm noted that although the Fed held rates steady at its latest meeting, continued high inflation could still prompt one or two rate hikes later this year.
The analyst sets support levels for the SET Index at 1,620 and 1,610 points, and resistance levels at 1,640 and 1,650 points.
Daol Securities anticipates further declines in the Thai bourse, citing overseas selling in technology shares during the holidays. The firm highlights concerns over excessive investment in AI and a rotation out of growth stocks.
Attention now turns to the direction of oil and banking stocks following last night’s conclusion of the FOMC meeting.
Last Monday, Thailand’s SET Index closed at 1,624.47 points, decreased 19.92 points or 1.21%, with a trading value of THB 88.48 billion.
