On Friday, Asia Plus Securities expects the Thai market to trade sideways within range amid potential short-term consolidation due to negative sentiment from tech selloffs, which may affect related stocks.
However, the index may also benefit from sector rotation toward valued equities.
The securities firm set a resistance level for the SET Index at 1,600 – 1,610 points and a support level at 1,580 points for today’s session.
Daol Securities stated that the Thai market may potentially extend gains and reach the 1,600 points for the first time in three years, after investors have turned back to stocks due to Middle East uncertainties and tech rallies.
However, the sector selling pressure in the U.S. markets overnight could cause some volatility in the Thai market.
The analyst house recommends a selective trading strategy, while also monitoring sector rotation. For today, fund inflows are expected toward stocks with the Domestic Play theme, such as the power plant sector and the high dividend group, including banking.
Yesterday, Thailand’s SET Index closed at 1,594.79 points, increased 6.73 points or 0.42%, with a trading value of THB 89.75 billion.
