Brokers project positive outlooks for the Thai stock market on Thursday, supported by weaker-than-expected U.S. inflation data. The softer inflation reading has improved near-term global market sentiment, although upside for the Thai market may remain constrained.
Krungthai XSpring Securities expects the Thai benchmark to potentially rebound today after a sharp decline in the previous session, as the U.S. Personal Consumption Expenditures (PCE) report released overnight came in below market expectations. The brokerage said this factor should provide short-term support for equities, but gains may be limited by domestic economic risks from flooding.
Krungthai XSpring also recommends investors continue monitoring foreign fund flow direction, which remains a key catalyst for the Thai market.
The securities firm set a resistance level for the SET Index at 1,580 points, and a support level at 1,550 points.
Daol Securities anticipates the Thai bourse to trade with volatility, but with stronger upward momentum than the previous session. The firm cited an improved global investment backdrop after the U.S. PCE figures came in below forecasts.
However, Daol noted that elevated U.S. bond yields remain a negative catalyst for emerging markets, as they could encourage capital to move back into the United States.
Yesterday, Thailand’s SET Index closed at 1,559.01 points, decreasing by 35.29 points or 2.21%, with a trading value of THB 121 billion.
