On Wednesday, Krungthai XSpring Securities expects the Thai market to potentially rebound after having sharply plunged, with buying opportunities in tech stocks following the recent selloffs.
While the declining oil prices reduced the inflationary pressures, it may also negatively affect Thai oil-related stocks.
The analyst recommends investors closely monitor today’s Monetary Policy Committee (MPC) meeting.
The securities firm set a resistance level for the SET Index at 1,565 points and a support level at 1,530 points for today’s session.
Daol Securities stated that while there are volatilities in the SET Index, it may also potentially rebound along with the foreign markets’ trend, after market participants had priced in the tech selling pressures and the MSCI Index revision.
Domestically, the Thai baht has underperformed its regional peers due to selling pressures in Thai stocks, and the expectation of the MPC maintaining the policy rate at 1% for the remainder of the year. Meanwhile, the emerging markets are still pressured by the Federal Reserve interest rate direction, with fund flows toward safe haven assets.
Additionally, the weakened baht will benefit exports, food, and electronics sectors, while the fund outflows will negatively affect imports and airline stocks, as well as stocks that relied on foreign funds.
Yesterday, Thailand’s SET Index closed at 1,540.90 points, decreased 33.23 points or 2.11%, with a trading value of THB 114.17 billion.
