Brokers project neutral outlooks for the Thai stock market on Friday, with investors waiting for fresh signals from U.S. labor data. Elevated bond yields remain a constraint on risk appetite, even as concerns over U.S. interest rates have eased slightly.
Asia Plus Securities expects the Thai benchmark to move sideways within range, noting that concerns over the U.S. rate outlook has partially subsided after the Federal Reserve vice chair indicated that any assessment of monetary policy would still take time.
However, the Asia Plus said U.S. bond yields remain high, limiting upside for equities. With no major new domestic or external catalyst, investors are expected to focus on the U.S. nonfarm payrolls report due later tonight.
The securities firm set a resistance level for the SET Index at 1,580 points and a support level at 1,550 points.
Daol Securities also anticipates the Thai bourse to continue trading sideways as global investors monitor U.S. employment figures. The brokerage said the recent rise in oil prices could support buying interest in the energy sector.
Domestically, investors are still assessing risks linked to flooding, warnings over water flows from the northern region and expected rainfall next week. Market participants are watching whether those conditions will have a material impact on Bangkok, the analyst remarked.
Yesterday, Thailand’s SET Index closed at 1,563.91 points, increasing by 4.90 points or 0.31%, with a trading value of THB 77.47 billion.
