Mr. Benjaphol Suthwanish, Assistant Managing Director of Securities Analysis Department at UOB Kay Hian Securities (Thailand), stated that the Stock Exchange of Thailand (SET) Index closed the morning session higher by 0.33%, or 4.60 points, at 1,415.04 points, supported by large-cap stocks despite selling pressure, as the market had already priced in much of the positive sentiment surrounding the possible formation of a strong coalition government.
In the best-case scenario, the government coalition between Bhumjaithai, Pheu Thai, Kla Tham party (totaling 352 seats) would ensure the Prime Minister’s long-term security, as any coalition withdrawals would not have an impact. This scenario has been the key driver pushing the market up sharply over the past two days.
However, should the formation of the government not proceed as expected—such as a coalition between Bhumjaithai, Pheu Thai, and other small parties (totaling 285 seats), or if a different formula for forming a government coalition is adopted—the market is likely to shift downwards.
This morning, there has also been speculative buying of GULF on expectations of strong earnings after the share price has long underperformed. TRUE is seeing speculative interest from expectations of a dividend payout, similar to ADVANC, while DELTA also provides support.
The market is expected to continue moving sideways in the afternoon, with support at 1,405 points and resistance at 1,420 points.
The top five securities by trading value in the morning session are as follows:
- Gulf Development PCL (SET: GULF): Trading value THB 2.83 billion, closed at THB 56.00 per share, up THB 1.25 or 2.28%.
- Kasikornbank PCL (SET: KBANK): Trading value THB 1.95 billion, closed at THB 193.00 per share, down THB 1.50 or 0.77%.
- Advanced Info Service PCL (SET: ADVANC): Trading value THB 1.90 billion, closed at THB 383.00 per share, down THB 8.00 or 2.05%.
- True Corporation PCL (SET: TRUE): Trading value THB 1.88 billion, closed at THB 13.40 per share, up THB 0.40 or 3.08%
- Delta Electronics (Thailand) PCL (SET: DELTA): Trading value THB 1.26 billion, closed at THB 220.00 per share, up THB 3.00 or 1.38%.
