Brokers project positive outlooks for the Thai stock market on Wednesday, supported by an improved trading environment. Nevertheless, upside remains limited due to elevated bond yields.
Maybank Securities (Thailand) expects the Thai benchmark to potentially rebound along with regional trends, benefiting from declining crude prices and a recovery in the technology sector. However, the brokerage flags continued fund outflows from rising U.S. Treasury yields as the key constraint.
The analyst also recommends investors closely monitor the Middle East situation, while noting that the SET Index is estimated to move within the 1,590 – 1,610 range.
Separately, Daol Securities also anticipates the Thai bourse to trade sideways-up. The analyst noted that investor sentiment has improved after oil prices declined, while most Asian equity markets opened in positive territory.
The better regional backdrop may continue to draw buying interest into Thai electronics shares, Daol said. Still, the brokerage advised investors to watch for selling pressure in the energy sector following the pullback in oil prices.
Yesterday, Thailand’s SET Index closed at 1,594.30 points, decreasing by 8.07 points or 0.50%, with a trading value of THB 79.09 billion.
