Brokers project neutral-to-positive outlooks for the Thai stock market on Monday, after weaker-than-forecast U.S. labor data reduced concerns over inflation pressure and a faster pace of Federal Reserve tightening. The improved external backdrop may potentially support risk appetite, while domestic selling pressure appears to be easing.
Kasikorn Securities expects the Thai benchmark to rebound in the morning session, as weak U.S. nonfarm payrolls data eased inflationary and rate hike pressures.
Meanwhile, the brokerage noted that foreign fund outflows are slowing down as investors have largely absorbed much of the negative impact from flooding risks.
The securities firm set a support level for the SET Index at 1,560 points, and a resistance level at 1,585 points.
Daol Securities estimated that the Thai bourse will trade within a support level of 1,545 – 1,552 points, and a resistance level at 1,600 points. The firm said market sentiment has improved after U.S. employment figures came in below expectations, prompting investors to reduce the perceived probability of a Fed rate increase this month to below 30%.
Nevertheless, Daol said the inflation report remains the more important indicator for monetary policy expectations. The U.S. consumer price index is due next week, keeping the stocks’ movement within the range in the meantime.
The analyst recommends investors monitor the Iran war situation, the FOMC meeting minutes and U.S. government bond auctions to assess demand conditions.
Last Friday, Thailand’s SET Index closed at 1,571.62 points, increasing by 7.71 points or 0.49%, with a trading value of THB 71.08 billion.
