Brokers project neutral-to-positive outlooks for the Thai stock market on Monday, following an uptick in sentiment spurred by recent gains on Wall Street. Market participants are weighing the impact of softer U.S. labor market data on the Federal Reserve policy, while also monitoring other factors that may potentially impact the market direction.
Maybank Securities (Thailand) expects the Thai benchmark to rebound in early trading, citing the positive momentum in U.S. equities as the signs of a slowdown in U.S. employment growth could give the Fed more leeway before implementing tighter monetary policy.
Attention is also shifting domestically as listed companies approach the final phase of earnings releases, a period which may influence investor flows depending on reported results.
Market participants are also focusing on the August 13 MSCI index review announcement. This decision could affect fund flows in the coming weeks, depending on any resulting adjustments to Thai stock weightings.
The securities firm set a support level for the SET Index at 1,605 points, and a resistance level at 1,625 points.
Meanwhile, Daol Securities forecasts the SET Index to trade within a range of 1,590 – 1,655 points this week, as the market digests the tail end of the earnings period. Strong earnings results could prompt renewed buying in certain stocks.
However, external risks persist, including U.S.-Iran negotiations, U.S. economic indicators—particularly inflation data—and upcoming statements from Fed officials, in addition to the August MSCI index review.
Last Friday, Thailand’s SET Index closed at 1,612.00 points, decreased 2.64 points or 0.16%, with a trading value of THB 63.39 billion.
