On Wednesday, TISCO Securities expects the Thai market to exhibit an upward movement after the political situation has stabilized, causing foreign fund inflows.
However, MSCI Rebalance may affect individual equity, particularly those that have been added or removed from MSCI Index.
In the near-term, the brokerage firm has warned of a potential profit-taking action as the SET Index reaches Overbought status.
The securities firms set a resistance level for the SET Index at 1,420 – 1,425 points and a support level at 1,400 points for today’s session.
Daol Securities also expects the Thai market to surge, setting a resistance level at 1,420 points. This was primarily driven by significant fund inflows from foreign investors who were actively purchasing both equities and bonds yesterday. Additionally, a more stable domestic political environment has also supported this growth trajectory.
However, the analyst firm warns that short-term profit-taking may occur as the index approaches the resistance level and previous gains are realized.
The broker recommends investors closely monitor global factors including geopolitical tensions in the Middle-East and key U.S. economic reports, slated to come out tonight.
Yesterday, Thailand’s SET Index closed at 1,410.44 points, increased 9.55 points or 0.68%, with a trading value of THB 72.26 billion.
