Brokers project neutral-to-negative outlooks for the Thai stock market on Tuesday, as falling crude oil prices and global technology sector weakness weigh on domestic energy and electronics equities. While softening geopolitical friction provides modest relief.
Krungthai XSpring Securities expects the Thai benchmark to trade sideways within range, as Middle East tension has partially moderated after Iran moved toward diplomatic negotiations with the United States. However, selling pressure across domestic energy stocks is anticipated following a sharp pullback in international crude oil benchmarks.
The brokerage noted that market sentiment remains cautious as investors monitor the upcoming U.S. midterm election.
The securities firm set a support level for the SET Index at 1,500 points, and a resistance level at 1,520 points.
Meanwhile, Daol Securities anticipates the Thai bourse to face downward pressure from sharp selling in the energy sector following a decline in oil prices. Furthermore, global tech downtrend may also weigh Thai electronic components names.
Nevertheless, the analyst indicates that any temporary dip to or slightly below the 1,500-point threshold presents a favorable opportunity for stock accumulation.
Investors continue to focus on the outcome of the U.S. midterm election to determine the next market catalyst.
Yesterday, Thailand’s SET Index closed at 1,507.20 points, decreasing by 11.39 points or 0.75%, with a trading value of THB 55.79 billion.
