Brokers project positive outlooks for the Thai stock market on Friday, as U.S. producer inflation data came out lower than anticipated. Investors continue to track second quarter corporate earnings results, with robust performance seen as a supportive factor for the market.
Asia Plus Securities expects the Thai benchmark to move sideways-up, citing weaker-than-estimated July U.S. Producer Price Index (PPI) figures, which eased concerns over Federal Reserve interest rate hikes. The resulting pullback in bond yields is also viewed as positive for risk assets.
Domestically, most listed companies have reported robust quarterly results, further boosting buying interest among investors.
The securities firm set a resistance level for the SET Index at 1,625 – 1,630 points, and a support level at 1,605 – 1,610 points.
Daol Securities similarly anticipates sideways up movement in the Thai bourse, driven by improved overall market sentiment following the lower-than-expected U.S. PPI.
The brokerage firm noted that analysts have started to revise earnings estimates upwards as a result of positive financial reports from listed Thai firms. However, the recent decline in oil prices may place some pressure on the energy sector, thereby limiting the index’s gains.
Yesterday, Thailand’s SET Index closed at 1,614.36 points, increased 1.74 points or 0.11%, with a trading value of THB 77.86 billion.
