ฺBrokers project neutral-to-negative outlooks for the Thai stock market on Wednesday, amid pressure from elevated U.S. bond yields and caution ahead of the Federal Reserve’s policy meeting outcome. Rising oil prices are also renewing inflation concerns, though domestic energy and banking shares may help limit downside pressure.
Asia Plus Securities expects the Thai benchmark to trade sideways-down. The firm said U.S. Treasury yields remain high as investors price in the possibility of further Fed rate increases, while markets are waiting for the results of the central bank meeting tonight.
The brokerage also noted that the continued rebound in oil prices could add to inflation worries. However, stronger crude prices may also support Thai energy names, while banks could benefit from the upward interest rate trend, helping stabilize the broader index.
The securities firm set a resistance level for the SET Index at 1,585 points and a support level at 1,565 points.
Daol Securities also expects the Thai bourse to move sideways, after DELTA has weighed on the benchmark in the previous session. Nevertheless, buying interest in other sectors helped cushion the market and kept the decline limited.
Daol added that investors remain focused on the FOMC meeting, while bond yields holding at elevated levels continue to weigh on investment sentiment.
Yesterday, Thailand’s SET Index closed at 1,578.66 points, decreasing by 12.41 points or 0.78%, with a trading value of THB 75.78 billion.
