Brokers project neutral outlooks for the Thai stock market on Thursday, pointing to renewed external pressure from higher oil prices, rising U.S. bond yields and geopolitical concerns. Investors are also monitoring the U.S.-China summit.
Krungthai XSpring expects the Thai benchmark to move sideways, as market sentiment remains constrained by renewed tension in the Middle East after Iran’s leadership had not allowed unrestricted shipping through the Strait of Hormuz.
Higher crude prices are also adding pressure, the brokerage said, while the U.S. 10-year bond yield has climbed to around 5%, weighing on risk assets.
Market participants are also awaiting the negotiation between the U.S. President Donald Trump and Chinese President Xi Jinping.
The securities firm set a resistance level for the SET Index at 1,620 points, and a support level at 1,590 points.
Daol Securities also projected sideways movement for the Thai bourse, citing the return of bond-yield concerns and firmer oil prices as key factors affecting investment conditions.
The analyst added that Thai equities have already advanced for a period, which could leave the market vulnerable to profit-taking. However, energy shares may attract renewed buying interest as oil prices rise.
Yesterday, Thailand’s SET Index closed at 1,610.70 points, increasing by 6.26 points or 0.39%, with a trading value of THB 64.41 billion.
