Brokers projected mixed outlooks on the Thai stock market on Tuesday, as investor sentiment improved following bank sector earnings reports that exceeded expectations. Investors are also monitoring overseas factors that could impact the market’s direction.
FSS International Investment Advisory Securities Company Limited (FSSIA) expects positive momentum in the Thai benchmark index to continue, spurred by recent earnings releases from the banking sector that delivered stronger-than-projected results.
The analyst noted that if today’s corporate earnings from big-caps also surpass estimates, it would reinforce confidence in Thailand’s economic outlook. Such results could signal that recent concerns over rising energy prices may not be weighing as heavily on listed firms as previously feared, providing a lift to broader market sentiment.
The securities firm has identified a resistance level for the SET Index at 1,655 points and a support level at 1,640 points.
Meanwhile, Daol Securities expects the Thai bourse to remain volatile, as global investors continue to exercise caution in technology stocks and remain sensitive to ongoing geopolitical tensions, which could affect risk appetite.
Domestically, despite recent fund inflows and support from higher crude prices, upside for the Thai stock index may be capped in the near term as it approaches its short-term resistance level of 1,630 – 1,650 points. As such, the brokerage firm suggests periodic or frequent portfolio rotation, as the index nears technical resistance.
The broker also anticipates the Thai market to trend sideways in the next session, as traders monitor external developments and assess the potential for renewed profit-taking at upper technical boundaries.
Yesterday, Thailand’s SET Index closed at 1,646.00 points, increased 6.96 points or 0.42%, with a trading value of THB 93.40 billion.
