Mr. Kitpon Praipaisarnkit, Senior Executive Vice President at UOB Kay Hian Securities (Thailand), stated that the Stock Exchange of Thailand (SET) Index closed the morning session lower by 0.28%, or 4.03 points, at 1,437.50 points due to profit-taking and concerns over political instability amid delayed election results.
Previously, the SET Index exhibited gains, driven by expectations for the establishment of a stable government. However, the analyst noted that in the short term, the rise was too rapid, while increasing uncertainty in the political situation has put pressure on the investment atmosphere.
The main concern stems from the current election, whose results have not yet been fully announced after five days—unlike previous elections in 2019 and 2023, which took only four and one days, respectively.
Additionally, there is a risk that may lead to a new election, following the discovery of a barcode on ballot papers that can trace back to which party the voter supported. This is considered a violation of the election law.
Mr. Kitpon expects that such uncertainty will continue to pressure the market and create ongoing volatility until clarity is achieved. This results in profit-taking actions as investors seek to mitigate risk.
Meanwhile, previous support for the Thai stock market derived from foreign fund inflows, which coincided with the rise of large-cap stocks. Comparing the SET Index with the energy sector stocks such as PTT PCL (SET: PTT) and PTT Exploration and Production PCL (SET: PTTEP), the market can observe similar upward trends. Today, those sectors are approaching resistance levels, prompting profit-taking when the index neared 1,450 points.
For the afternoon session outlook, Mr. Kitpon estimates that the index will likely fluctuate within the negative territory by no more than 5 points. Although profit-taking remains a pressure, selective buying in individual stocks—especially those in a low price range and with good earnings performance—still persists.
The analyst recommends investors enter “Caution Mode” due to political uncertainties, suggesting a support level at 1,440 points and resistance at 1,460 points.
The top five securities by trading value in the morning session are as follows:
- Kasikornbank PCL (SET: KBANK): Trading value THB 2.5 billion, closed at THB 196.50 per share, down THB 2.00 or 1.01%.
- PTT PCL (SET: PTT): Trading value THB 2.17 billion, closed at THB 35.75 per share, down THB 0.25 or 0.69%.
- Bangkok Bank PCL (SET: BBL): Trading value THB 1.83 billion, closed at THB 164.50 per share, up THB 0.50 or 0.30%.
- Bangkok Dusit Medical Services PCL (SET: BDMS): Trading value THB 1.79 billion, closed at THB 21.50 per share, up THB 0.40 or 1.90%.
- Gulf Development PCL (SET: GULF): Trading value THB 1.77 billion, closed at THB 58.50 per share, unchanged.
