On Thursday, Thailand’s SET Index closed the morning trading session at 1,577.42 points, showing an increase of 13.83 points or 0.88%, with a trading value of THB 27.88 billion.
Bualuang Securities (BLS) noted that the Thai stock market opened strongly this morning, in contrast to U.S. equities, which declined last night following the release of May’s Consumer Price Index (CPI) data. The May CPI accelerated by 4.2% year-on-year, compared to 3.8% in the previous month.
While the Core CPI rose by only 0.2% from the prior month—slightly lower than market expectations—investors continued to focus on unresolved inflation risks. This has led to concerns that the U.S. Federal Reserve may delay interest rate cuts, or in a worst-case scenario, resume rate hikes later this year if inflationary pressures intensify.
Despite this bearish sentiment in global markets, the Thai stock market demonstrated greater resilience than many other regional bourses, most of which traded within a narrow range or experienced selling pressure due to worries about U.S. interest rate direction.
The Thai bourse was supported by a broad-based recovery in large-cap stocks, especially in the energy, electronics, ICT, banking, and petrochemical sectors. Leading gainers included GULF, DELTA, ADVANC, PTTEP, IVL, SCC, and PTTGC. Conversely, tourism-related stocks such as AOT, CENTEL, and MINT continued to weaken, reflecting a rotation back into rebounding stocks.
Furthermore, relatively inexpensive valuations of Thai stocks also played a key factor in driving the morning gains, compared to other Asian markets, notably South Korea and Taiwan, which previously saw gains from semiconductor stocks. There is also optimism for domestic investment stimulus measures and the anticipated inflow of new capital from local funds, which are expected to further support the market.
In the afternoon, the market is expected to consolidate before potentially moving higher. Key short-term factors to watch include the U.S. Federal Reserve’s monetary policy outlook, especially regarding how upcoming economic data will influence interest rate decisions for the remainder of the year. Investors are also closely monitoring the European Central Bank (ECB), which may raise rates in the near term.
On the domestic front, traders are keeping a close eye on the progress of the investment-support measures via the TISA scheme, which may help boost investment flows and confidence in the Thai stock market going forward.
Bualuang recommends accumulating during price pullbacks, avoiding aggressively chasing overbought stocks, and steering clear of stocks lacking momentum. Preference should be given to stocks trading at mid-range prices with strong profit fundamentals or prospects for earnings upgrades, as well as those offering high dividend yields or having individual catalysts.
Notably, stocks related to domestic consumption are attractive for the next cycle, as they have lagged the broader market and could benefit from renewed rotation.
Nevertheless, the ongoing recovery of the Thai stock market will require sustained support from listed company earnings and improved economic confidence, especially given lingering uncertainties around U.S. monetary policy, according to the brokerage.
Support and resistance levels are estimated at 1,560 and 1,580 points, respectively.
The five stocks with the highest trading value were as follows:
- DELTA: Trading value at THB 2.91 billion, closing at THB 357.00, up THB 5.00 or 1.42%
- GULF: Trading value at THB 1.99 billion, closing at THB 64.25, up THB 1.25 or 1.98%
- SCB: Trading value at THB 1.35 billion, closing at THB 137.50, unchanged
- ADVANC: Trading value at THB 1.26 billion, closing at THB 360.00, up THB 6.00 or 1.69%
- TRUE: Trading value at THB 1.19 billion, closing at THB 14.00, up THB 0.20 or 1.45%
