Analysts Expect Thai Market Volatility in First Half of July, with SET Moving between 1,450-1,550

Analysts anticipate that the benchmark index of Thailand will undergo high volatility trading in the first half of this month, before seeing a rebound in the second half, in line with the political issue. 

Since the Thai stock market is considerably sensitive to political issues, Trinity Securities suggests that the index will see volatile trading in the first half of July, coinciding with the beginning of the parliamentary session and the first meeting of the House of Representatives to elect the House speaker and then vote on the next prime minister. In this hypothetical scenario, the stock market could rebound in the second half of the month. But, if events don’t turn out as planned, the index could be exposed to further volatility and the pressure of a higher risk premium.

In this month’s trading, the SET index is expected to move between 1,450 and 1,550 points, with the first support level at 1,480 and the first resistance level at 1,520. Trinity suggests that investors should buy when the SET index drops below 1,490 and sell for profit when it picks up to the range of 1,520-1,550.

Trinity also named attractive stock sectors for investment in 3Q23, including: 

1.) domestic plays (BBL,KTB, CPALL, CPAXT, BJC and CRC) 

2.) tourism plays (ERW, SPA and AU)

3.) hospital plays (BH, BDMS, BCH, CHG and PR9)

4.) energy plays (BCP, IRPC, PTTGC and TOP)

5.) exports and agriculture plays (BTG, CPF and GFPT)

6.) equities that have already factored in the political events (GULF, BGRIM, GPSC and TRUE)