Thailand’s SET Index closed at 1,411.77 points, increased 3.47 points or 0.25% with a trading value of 38 billion baht. The analyst stated that the Thai stock market was strengthening its base above 1,400 level, buoyed by retail sectors after reporting their positive 3Q23 earnings, especially DOHOME. Finance and power generator also received positive sentiment from lower bond yields, but pressured by the energy sector.
The analyst expected the SET Index to move in a sideways trend, while recommending investors to watch for the Fed’s statement tonight and also the earnings season.
Investor confidence in Thailand’s stock market has reached a five-month low, pressured by the conflict in the Middle East between Israel and Hamas as well as capital outflows, coupled with the earnings season.
Federation of Thai Capital Market Organizations (FETCO) stated that according to the survey during 20-31 October, 3-month forward FETCO Investor Confidence Index is expected to be at 76.87, a 31.5% drop from the survey in the previous month, which would be at a “bearish” zone (40-79 of FETCO ICI Criterion).
On the opposite side of pressure in the market, the survey showed that the economic stimulus plan by the government was the most bullish factor to support investors’ confidence.
The Topix banks index made a sharp plunge in the morning session on Wednesday, dropping by 4.75% after the market lost hope of seeing positive interest rates.
The drop came after the Bank of Japan’s Governor Kazuo Ueda signalling that it is unlikely policymakers will have sufficient data to declare an end to negative rates by year-end as he continues to monitor whether a wage-inflation cycle will materialize.
