On Monday, Thailand’s SET Index closed the morning trading session at 1,609.70 points, showing a decrease of 1.58 points or 0.10%, with a trading value of THB 39.90 billion.
Kasikorn Securities (KS) wrote that the Thai stock market traded sideways, while setting a target for the SET Index at 1,620 points, citing limited short-term upside after the recent rise, driven by capital inflows into the region. According to the brokerage, fund inflows into the Thai stock market reached THB 40 billion year-to-date, contributing to elevated price-to-earnings ratios.
However, the upswing is not backed by a strong earnings-per-share recovery, making further upside challenging. The firm expects the SET Index to hit a maximum of 1,650 points; therefore, recommending investors wait for a market pullback before accumulating positions.
In the short term, some sectors are already trading at demanding valuations. The brokerage suggests rotating into laggard groups, such as the power plant sector, which still offers further upside, notably BGRIM. Stocks in the so-called ‘second-tier’ category, which were previously negatively affected by the closure of the Strait of Hormuz, are also highlighted.
This week, investors are suggested to closely monitor the U.S. Federal Reserve’s minutes set for release on Wednesday, July 8, as well as Thailand’s Constitutional Court’s ruling on Thursday, July 9, regarding the THB 400 billion loan decree.
In the afternoon session, the market is expected to fluctuate within a range of 1,590 to 1,620 points.
As for the top five securities by trading value:
- KBANK: trading value of THB 2.89 billion, closing at THB 227.00, down THB 6.00 or 2.58%
- SCB: trading value of THB 2.52 billion, closing at THB 150.50, down THB 3.00 or 1.95%
- KTB: trading value of THB 2.37 billion, closing at THB 39.25, down THB 0.75 or 1.88%
- BBL: trading value of THB 1.78 billion, closing at THB 188.50, down THB 4.00 or 2.08%
- GULF: trading value of THB 1.71 billion, closing at THB 64.00, up THB 0.50 or 0.79%
