Brokers project neutral-to-negative outlooks on Tuesday, as investor sentiment is dampened by the recent development in the Middle East, as well as the weakness in the technology stocks ahead of a high-profile corporate earnings result.
Kasikorn Securities expects the Thai benchmark to move sideways to sideways-down, noting that the market is consolidating amid persistent external headwinds.
The analyst highlighted concerns over fresh U.S. sanctions targeting Iran and its trading partners, alongside continued high bond yields as major downside risk. Furthermore, the short-term weakness in the technology and electronics sectors also indicates further volatility ahead of earnings results from Nvidia, a key industry player.
The securities firm set a support level for the SET Index at 1,585 points, and a resistance level at 1,610 points.
Daol Securities echoed the cautious view, expecting the Thai bourse to trend sideways-down as overall investment conditions remain challenging. The technology sector, particularly in the U.S., saw declines prior to Nvidia’s earnings announcement, intensifying pressure. Additionally, a marginal decrease in crude prices could weigh on energy-related stocks.
Daol suggested that the current market consolidation may offer mid to long-term buying opportunities, especially in theme-based sectors. The firm favors select tourism stocks including CENTEL, ERW, and AOT for speculative trades, alongside larger mega play themes such as data center providers GPSC, BGRIM, and ADVANC. Bank stocks were also highlighted for their potential upside from broader economic recovery.
Yesterday, Thailand’s SET Index closed at 1,601.05 points, decreased 12.73 points or 0.79%, with a trading value of THB 60.9 billion.
