Brokers project positive outlooks for the Thai Stock market on Monday, as reduced geopolitical concerns in the Middle East and strong global technology sector momentum support investor sentiment. The cancellation of a planned U.S. military operation against Iran and a pivot toward renewed negotiations have eased market anxieties, while technology-related gains are also seen driving performance.
Asia Plus Securities forecasts the Thai benchmark to trade sideways-up, attributing the positive outlook to decreased concerns over Middle East unrest following a decision by the U.S. President Donald Trump to call off a strike on Iran and resume diplomatic discussions. This development has provided a boost to overall market sentiment and also led to a pullback in crude oil prices, which further supports equities in general.
However, the decline in oil prices could weigh on Thai energy shares, though robust second-quarter corporate earnings may help limit the downward pressure on these stocks.
The securities firm set a resistance level for the SET Index at 1,640 points, and a support level at 1,610 points.
Furthermore, Daol Securities also expects the Thai bourse to advance in tandem with buying interest in global technology names, particularly following better-than-expected results and increased capital expenditures by major tech firms. This positive outlook is expected to benefit memory and semiconductor stocks, potentially lifting sentiment for Asian technology leaders, as well as DELTA and other electronics shares.
Despite the improved outlook, persistent uncertainty surrounding the Iran conflict—alternating between periods of ceasefire and renewed hostilities—continues to cause volatility in oil prices.
The most recent announcement from President Trump to halt a military strike on Iran is anticipated to help ease oil prices at the start of the week, though this may pressure energy-related stocks.
The brokerage firm also believes that should the SET Index approach a resistance level at the 1,650 – 1,657 range, profit-taking could occur as investors await the next round of quarterly earnings releases.
Last Friday, Thailand’s SET Index closed at 1,623.64 points, increased 25.53 points or 1.60%, with a trading value of THB 89.03 billion.
