Brokers project neutral outlooks for the Thai stock market on Tuesday, with analysts citing mixed market signals. Gain in global technology stock may potentially support Thai electronics shares, while weaker oil prices could weigh on energy names.
Krungthai XSpring Securities expects the Thai benchmark to move sideways, with positive sentiment from the technology sector after U.S. tech shares advanced. The brokerage also noted that U.S. services data came in below expectations, helping ease investor concern over a faster pace of Federal Reserve interest rate increases.
The analyst added that investors are also waiting for Thailand’s inflation report due today, which may influence market direction.
The securities firm set a resistance level for the SET Index at 1,585 – 1,590 points, and a support level at 1,550 – 1,555 points.
Daol Securities also expects the Thai bourse to move sideways, saying the market still lacks a clear catalyst. The brokerage said falling crude prices may pressure the index through energy stocks, a major component of the Thai market.
However, Daol said the approach of the corporate earnings season could bring short-term speculative interest. Banking shares are expected to be the first major group to report quarterly results.
Yesterday, Thailand’s SET Index closed at 1,576.45 points, increasing by 4.83 points or 0.31%, with a trading value of THB 55.04 billion.
