Brokers project cautiously positive outlooks for the Thai stock market on Monday, as investors will focus on the U.S. monetary policy update this week following the announcement of key inflation data.
TISCO Securities expects the Thai benchmark to modestly rebound in early trading, with market participants already pricing in much of the risk of a Fed rate increase this week. Nevertheless, the analyst still recommends investors closely monitor the Fed’s policy move.
Domestically, investors are awaiting the Election Commission’s move in the Senate collusion case.
The Securities firm set a support level for the SET Index at 1,600 points, followed by 1,580 points, and a resistance level at 1,620 points.
Daol Securities estimated that the Thai market will trade within a weekly range of 1,585 to 1,630 points, with the Federal Open Market Committee meeting likely to be the main market driver. Inflation data remained close to the previous month’s level, while core CPI eased slightly.
However, Daol said repeated comments from Fed officials that inflation remains the key policy gauge have increased market expectations for a rate hike at this meeting to 87%.
The brokerage also noted that the prolonged Iran war, with no clear sign of a near-term resolution, helped keep oil prices elevated. The overall investment tone is likely to stay defensive, while energy shares may attract buying interest in line with stronger oil prices.
Last Friday, Thailand’s SET Index closed at 1,604.52 points, decreasing by 10.55 points or 0.65%, with a trading value of THB 71.21 billion.
