Mr. Kitphon Praipaisankij, Deputy Managing Director at UOB Kay Hian Securities (Thailand), stated that Thailand’s SET Index closed at 1,437.12 points in the morning session, increasing 32.10 points or 2.28%, with a trading value of THB 41.69 billion. This was supported by a rebound in Asian investment sentiment as concerns over oil prices eased.
Shares in the energy and petrochemical sectors, which carry significant weight in the local bourse, advanced due to favorable external factors. For the petrochemical industry, fears about disruptions from a potential closure of the Strait of Hormuz appear less severe than initially anticipated. Meanwhile, oil refineries, though exposed to some risk, have begun sourcing crude from regions outside the Middle East.
Indorama Ventures (IVL), for example, is likely to see limited impact as it operates 136 plants in 31 countries, sourcing feedstock close to each facility. Around 70% of its sales come from the United States, where production relies on shale oil and gas, leaving the company largely insulated from Middle East supply threats. Additionally, the company’s selling prices are closely linked to oil prices, which are supporting healthy profit margins.
Elsewhere, packaging companies may benefit in the short term, while power generation shares have shown resilience, with their earnings showing less volatility. Shipping companies, particularly RCL, have received support from higher freight rates.
Mr. Kitphon noted that market participants are rotating into sectors expected to benefit from ongoing developments in the Middle East. Regarding the domestic political landscape, most of the impact from the new government formation has already been priced in.
Investors are now awaiting updates on government relief measures to address higher energy costs, though expectations are tempered by the caretaker administration’s limited capacity to raise additional funds for the Oil Fuel Fund. Economic stimulus efforts are expected to emerge in the second half of the year.
Looking ahead, the Thai stock market is projected to maintain its positive momentum in afternoon trading, with important resistance at 1,466 points and a session trading range anticipated between 1,409 and 1,443 points.
The top five securities by trading value in the morning session are as follows:
- True Corporation PCL (SET: TRUE): Trading value THB 3.99 billion, closed at THB 14.00 per share, up 0.60 or 4.48%.
- Delta Electronics (Thailand) PCL (SET: DELTA): Trading value THB 3.65 billion, closed at THB 268.00 per share, up THB 10.00 or 3.88%.
- Gulf Development PCL (SET: GULF): Trading value THB 2.60 billion, closed at THB 57.25 per share, up THB 1.50 or 2.69%.
- PTT Exploration and Production PCL (SET: PTTEP): Trading value THB 2.19 billion, closed at THB 147.00 per share, up THB 1.50 or 1.03%.
- PTT PCL (SET: PTT): Trading value THB 1.99 billion, closed at THB 33.50 per share, remaining flat.
