Brokers projected positive outlooks for the Thai stock market on Wednesday, buoyed by gains in electronics shares following further recovery momentum in global technology stocks. Brokerages signaled, however, that room for index gains may be constrained in the short term amid ongoing profit-taking.
TISCO Securities anticipated gains for the Thai benchmark Index, supported by strength in electronics-component shares tracking the positive global technology sector. Energy-related stocks were expected to benefit as well, given that crude oil prices remain elevated.
While these factors provide upward momentum, the analyst flagged that the upside remains capped as investors may opt to lock in recent profits.
The securities firm set a support level for the SET Index at 1,635 – 1,640 points and a resistance level at 1,660 points, with a further resistance at 1,670 points if sentiment strengthens.
Daol Securities expects the Thai bourse to continue trading sideways, as the index has recently reached a short-term target of 1,650 points. Nevertheless, the brokerage firm forecasted the Thai stock index to extend gains, driven by the ongoing rebound in global technology stocks.
However, the broker noted that foreign fund inflows could slow after a sustained 13-session rally. The analyst also pointed to lingering volatility risks from tension in the Middle East, which could influence oil prices and, in turn, impact market sentiment.
Yesterday, Thailand’s SET Index closed at 1,652.97 points, increased 6.97 points or 0.42%, with a trading value of THB 97.96 billion.
