Brokers project neutral-to-negative outlooks for the Thai stock market on Wednesday, as investors navigate through increased global volatility that came after a recent flare up in the Middle East.
FSS International Investment Advisory Securities (FSSIA) expects the Thai benchmark to trade with a weaker tone, following declines in global markets. Investor sentiment is being pressured by higher crude prices linked to Middle East tensions and a rise in bond yields to a 20-month high.
Meanwhile, risk assets remain under pressure as markets wait for U.S. employment figures, with investors still weighing the possibility of a Federal Reserve rate hike in September.
The securities firm set a support level for the SET Index at 1,575 points, and a resistance level at 1,595 points.
Daol Securities anticipates the Thai bourse to move sideways while investors wait for fresh catalysts. The brokerage stated that energy stocks may benefit from firmer oil prices, while rising bond yields are likely to weigh on electronics shares.
For short-term strategy, Daol recommended holding back on new investment until market volatility eases. For medium to long-term positioning, the analyst suggested gradual accumulation in selected themes, including data center-related stocks GPSC, BGRIM and ADVANC, as well as banking names KTB, KBANK, TTB and KKP.
The broker also recommended investors closely monitor U.S. labor market data and Iran developments.
Yesterday, Thailand’s SET Index closed at 1,588.68 points, decreasing by 6.48 points or 0.41%, with a trading value of THB 72.56 billion.
