Mr. Natapon Khamthakrue, Assistant Managing Director of Securities Analysis at Yuanta Securities (Thailand), stated that the Stock Exchange of Thailand (SET) Index closed the morning session higher by 1.32%, or 18.68 points, at 1,430.38 points, in response to progress in government formation, amid news suggesting a majority government with more than 300 seats.
“It was expected that the Thai stock market would rise. This time, the party that won first place is able to form a government, similar to 2019, while in 2023, the first-ranked party couldn’t do so,” said Mr. Natapon.
There is also primary support from strong buying in DELTA, as well as the energy sector benefitting from the increase in oil prices, and the domestic group.
Despite rising U.S. government bond yields that pressure emerging markets, Mr. Natapon noted that the stock market managed to surpass expectations of a limited upward movement. It now hit the highest point in 14 months.
However, as the SET Index nears the 1,450-point level, caution is recommended for possible profit-taking after breaking past the 1,430-point resistance, as since the election, foreign investors have already purchased over THB 16 billion at index levels between 1,380–1,400 points.
For the afternoon, it is expected that the market should stabilize at this level and will likely not rise much further, with resistance at 1,440 points and support at 1,420 points.
The top five securities by trading value in the morning session are as follows:
- PTT Exploration and Production PCL (SET: PTTEP): Trading value THB 3.12 billion, closed at THB 134.50 per share, up THB 5.00 or 3.86%.
- Advanced Info Service PCL (SET: ADVANC): Trading value THB 2.66 billion, closed at THB 392.00 per share, up THB 7.00 or 1.82%.
- PTT PCL (SET: PTT): Trading value THB 2.33 billion, closed at THB 35.75 per share, up THB 0.25 or 0.70%.
- Kasikornbank PCL (SET: KBANK): Trading value THB 2.05 billion, closed at THB 195.50 per share, up THB 2.50 or 1.30%.
- Delta Electronics (Thailand) PCL (SET: DELTA): Trading value THB 1.6 billion, closed at THB 223.00 per share, up THB 3.00 or 1.36%.
