On Tuesday, Thailand’s SET Index closed the morning trading session at 1,584.51 points, showing a decrease of 6.56 points or 0.41%, with a trading value of THB 48.15 billion.
UOB Kay Hian Securities (Thailand) noted that the Thai stock market declined in the morning session, reflecting concerns over external factors including a sharp increase in oil prices and a surge in U.S. government bond yields, which rose to touch 5%.
In addition, there was pressure from a sell-off in DELTA, stemming from a company-specific factor in which its parent company in Taiwan raised funds by issuing exchangeable bonds. This increase in supply triggered selling as investors moved to close risk positions, thereby exerting further pressure on the market.
Regarding comments from U.S. technology company executives who agreed to slow down the development of AI models, the brokerage observed that this development should be viewed separately from AI investment activities, which are not slowing down and still require substantial computing chips. The news, meanwhile, may cause the market to become more cautious on related equities.
For the afternoon outlook, the SET Index is expected to continue moving sideways in negative territory, likely to fluctuate below the 1,600-point level. Although domestic political concerns are easing, this may not be enough to offset worries over external factors as well as apprehensions regarding the upcoming U.S. Federal Reserve meeting tomorrow.
Market participants are recommended to closely monitor interest rate trends for this year and next, particularly the Fed’s Dot Plot, to determine if U.S. interest rates might pivot into an upward cycle. Support is pegged at 1,550–1,570 points, while resistance is expected at 1,600 points.
The top five most actively traded securities by trading value are as follows:
- DELTA: trading value THB 10.98 billion, closing at THB 238.00, down THB 14.00 or 5.56%
- PTT: trading value THB 2.58 billion, closing at THB 42.75, up THB 0.75 or 1.79%
- HANA: trading value THB 2.55 billion, closing at THB 51.00, up THB 2.50 or 5.15%
- KBANK: trading value THB 2.35 billion, closing at THB 253.00, up THB 2.00 or 0.80%
- KTB: trading value THB 1.90 billion, closing at THB 44.25, unchanged
