Brokers project positive outlooks for the Thai stock market on Thursday, buoyed by a pullback in U.S. bond yields after the U.S. Treasury announced a doubling of long-term bond repurchases between September and November. Investment sentiment may improve in the near term, although persistent concerns about U.S. fiscal health and Middle East tensions remain potential headwinds.
FSS International Investment Advisory Securities expects the recent moderation in U.S. bond yields to support gains in the Thai benchmark, following the U.S. Treasury’s move to increase the scope of long-term government bond buybacks over the coming months.
However, the analyst noted that this should be viewed as a short-term catalyst, as the ongoing expansion of the U.S. fiscal deficit continues to raise debt sustainability concerns, potentially requiring further borrowing and driving public debt higher.
Meanwhile, geopolitical risks persist, with heightened tensions in the Middle East. Reports indicate that Iran has threatened to target U.S. military bases in Europe, adding another layer of uncertainty to global markets.
The securities firm set a resistance level for the SET Index at 1,620 – 1,625 points, and a support level at 1,610 – 1,605 points.
Daol Securities projects that the Thai bourse will trend sideways-up, driven by the improved investment climate stemming from lower U.S. long-term bond yields. The brokerage expects this environment to benefit electronics shares. Additionally, sustained high oil prices could lend support to energy stocks, potentially moderating any downside in the market.
Daol advises short-term strategies in tourism-related equities in response to the “Thai Travel Thai Plus” initiative, highlighting CENTEL, ERW, and AOT. For the data center theme, GPSC, BGRIM, and ADVANC remain favored. The firm also points to KTB, KBANK, KKP, and TTB among banks poised to benefit from the economic rebound and await interim dividend opportunities.
Yesterday, Thailand’s SET Index closed at 1,609.76 points, decreased 11.86 points or 0.73%, with a trading value of THB 97.80 billion.
