On Monday, Asia Plus Securities expects the Thai market to move sideways-down along with the foreign markets’ trend, with lingering downward sentiment from the tech selloff, pressuring Thai electronics stocks.
After the U.S. reported robust May Nonfarm payroll figures, investors have raised concerns over the Federal Reserve increasing the policy rate, pushing the bond yield higher while the situation in the Middle East remains uncertain.
The securities firm set a resistance level for the SET Index at 1,600 points and a support level at 1,565 points for today’s session.
Daol Securities stated that market participants are still concerns over the protracted conflict in the Middle East, while the SET Index is facing pressure from the selloffs in the U.S. market, particularly tech stocks, after the U.S. employment figure came out better than expected, supporting the prospect of a rate hike by the Federal Reserve this year.
Domestically, investors have priced in the MSCI index revision, as such there are potential profit-taking actions this week.
The analyst house expects the Thai market to move within the 1,560 – 1,600 points range this week.
Last Friday, Thailand’s SET Index closed at 1,582.60 points, decreased 12.19 points or 0.76%, with a trading value of THB 67.94 billion.
