Brokers project neutral outlooks for the Thai stock market on Monday, as the U.S. nonfarm payrolls data came out exceeding expectations, raising concerns over U.S. monetary policy. Meanwhile, market participants continue to monitor both domestic and external short-term factors for investment direction.
Asia Plus Securities anticipates the Thai benchmark to trade sideways within range, identifying stronger-than-expected U.S. nonfarm payrolls for August as a continuing source of pressure. The employment report has kept expectations of a possible Federal Reserve rate increase in play.
However, demand for investment in artificial intelligence and data centres could support technology-linked stocks and help the broader market, according to the brokerage.
The securities firm set a support level for the SET Index at 1,580, and a resistance level at 1,600 – 1,605 points.
Separately, Daol Securities also estimated that the Thai bourse will move sideways within a range of 1,560 – 1,620 points, with the U.S. consumer price index (CPI) due late in the week drawing investor attention. In the meantime, the analyst expects short-term volatility around news of the Iran war, Thailand’s political uncertainty, and profit-taking activities.
Foreign investment flows remain a focus for Daol after overseas investors were net buyers of Thai equities last week, when the SET approached near 1,600 points.
Last Friday, Thailand’s SET Index closed at 1,595.58 points, increasing by 18.66 points or 1.18%, with a trading value of THB 63.42 billion.
