Brokers project neutral outlooks for the Thai stock market on Friday amid geopolitical strains, as investors monitored geopolitical developments in the Middle East. However, analysts indicated that Thai equities may demonstrate resilience due to supportive corporate earnings and the flexibility of the market structure.
TISCO Securities expects the Thai benchmark to trade sideways, following Iran’s consideration of draft legislation that could block ships from the United States and Israel from passing through the Strait of Hormuz.
Despite these heightened international risks, TISCO expressed confidence that Thai equities would face limited pressure, owing largely to stronger-than-anticipated earnings and the sectoral stability within the domestic market.
The securities firm set a support level for the SET Index at 1,606 points, and a resistance level at 1,625 – 1,632 points.
Daol Securities also projected sideways movement for the Thai bourse, noting that higher oil prices could provide positive momentum for energy stocks. However, the brokerage highlighted continuing uncertainties surrounding extended negotiations between the U.S. and Iran as well as the release of U.S. employment data later in the day, both factors prompting investors to remain cautious.
Daol remarked that international investors have recently returned as net buyers, following three straight sessions of net selling, with buying activity focused on sectors such as energy, banking, and ICT. Given the ongoing corporate earnings season, the analyst firm recommended a short-term trading strategy.
Yesterday, Thailand’s SET Index closed at 1,614.64 points, increased 4.86 points or 0.30%, with a trading value of THB 84.13 billion.
