Brokers project neutral-to-negative outlooks for the Thai stock market on Wednesday, reflecting investors’ downward sentiment. Ongoing tensions in the Middle East, rebound in crude oil prices, and soaring bond yield have contributed to increased volatility and pressured global benchmarks.
Asia Plus Securities expects the Thai benchmark to move sideways along with global stock performance, noting that the persistent geopolitical risks have supported higher oil prices, intensifying worries about accelerating inflation and continued upward movement in bond yields. The selling pressures in the tech sector have also contributed to the negative sentiment.
The securities firm set a resistance level for the SET Index at 1,630 points and a support level at 1,610 points.
Separately, Daol Securities indicated that the Thai bourse may potentially trade sideways-down. The firm attributed this outlook to the global rise in bond yields and selloffs in overseas technology stocks, which could impact Thailand’s electronics sector. Despite these risks, the analyst mentioned that elevated oil prices could continue to underpin energy shares.
For the short term, Daol has noticed a limited presence of new positive catalysts for the Thai market, raising the possibility of profit-taking activities. However, the firm suggested that pullbacks may offer opportunities to gradually accumulate big-cap stocks, particularly those linked to the data center theme such as GPSC, BGRIM, and ADVANC.
Banking stocks like KTB, KBANK, BBL, and KKP were also highlighted, as they are positioned to benefit from economic recovery and interim dividend payouts.
Yesterday, Thailand’s SET Index closed at 1,621.62 points, decreased 4.82 points or 0.30%, with a trading value of THB 83.30 billion.
