The SET Index surged by ten points in the morning session on Thursday, buoyed by a boost in refinery and city reopening stocks, as well as optimism for further relaxation of Thailand’s travel restrictions.
As of 12.30 hrs. local time in Thailand, the SET Index rose 9.65 points, or 0.57%, to 1,690.00 points, with a total trading value of THB36,441.05 million.
Today’s market sentiment was bolstered largely by strong buying pressure on shares in the refinery and city reopening sectors, the resumption of inflows on expectations of a gradual Fed rate hike to accommodate the US economic recovery, and hopes for further relaxation of Thailand’s travel restrictions, including the cancellation of the Thailand Pass.
Maybank Securities (Thailand) (MST) stated that positive expectations for further easing policy to support Thailand’s economic recovery, as well as the recent decline in US 10-year Treasury yields, are greatly boosting Thai stocks today.
On the upcoming Friday, the new set of CCSA is expected to introduce the cancellation of RT-PCR testing for both foreign tourists and Thai people who have arrived since May 1, which is considered a factor that stimulates traveling into Thailand.
MST expects the SET today to move upward in a range of 1,670 pts. support and resistance at 1,690-1,700 pts., recommending focus on stocks with a strong earnings growth outlook.