Brokers project neutral outlooks for the Thai stock market on Tuesday, as international market uncertainty and geopolitical issues weigh on sentiment. Rising oil prices and higher U.S. bond yields are contributing to cautious trading, yet energy shares could help limit further declines in the SET index.
TISCO Securities expects the Thai benchmark to move sideways, as investors respond to heightened risks in the Middle East, raising the oil prices and elevating U.S. 10-year bond yields to 4.7%.
Nevertheless, the analyst anticipates the support from the domestic energy sector to help counteract broader declines, although, trading volume is likely to be subdued ahead of a market holiday
The securities firm set a support level for the SET Index at 1,620 – 1,606 points, and a resistance level at 1,630 – 1,632 points.
Daol Securities also expects the Thai bourse to move sideways, noting that renewed caution has re-emerged globally, especially as market participants await the outcome of negotiations between the United States and Iran, as well as key U.S. inflation data (CPI) due out this week.
Rising oil prices may continue to benefit local energy shares, the brokerage firm added, helping to cushion potential losses for the Thai exchange. Additionally, the release of upcoming earnings reports could attract buying interest if corporate results outperform expectations.
Yesterday, Thailand’s SET Index closed at 1,624.36 points, increased 12.36 points or 0.77%, with a trading value of THB 61.74 billion.
