Brokers projected slightly bearish outlooks for the Thai stock market on Thursday, as weakness in regional technology stocks is shaping market direction, while ongoing uncertainty in the Middle East and fluctuations in crude oil prices continue to be critical risks for investors.
FSS International Investment Advisory Securities expects the Thai benchmark index to move sideways, with a potential decline following pressure across Asian equity markets from renewed selling in technology shares. This market movement occurs despite softer-than-expected U.S. inflation readings and a recent decline in U.S. Treasury yields, developments usually supportive for equities.
The analyst firm recommends investors closely monitor the volatility of the Middle East situation and the crude oil prices.
The securities firm set a support level for the SET Index at 1,620 points, with a next support level at 1,610. The resistance level was given at 1,640 points.
Meanwhile, Daol Securities noted that profit-taking, particularly in the banking sector, is contributing to Thai bourse’s volatility. The broker highlighted ongoing geopolitical instability in the Middle East and concerns over potential inflation acceleration tied to rising oil costs as overhanging issues for the market.
For tomorrow, the brokerage firm forecasts the SET Index to move in sideways to sideways-down range, reflecting persistent investor caution linked to geopolitical concerns.
Yesterday, Thailand’s SET Index closed at 1,630.21 points, increased 4.18 points or 0.26%, with a trading value of THB 86.23 billion.
