Brokers project negative outlooks for the Thai stock market on Thursday, as stronger-than-forecast U.S. inflation reduced demand for risk assets. Domestically, investors continue to monitor listed companies’ third-quarter earnings reports.
FSS International Investment Advisory Securities (FSSIA) expects the Thai benchmark to decline due to pressure from the robust U.S. Consumer Price Index (CPI) figures.
The analyst said the data triggered selling in technology shares and encouraged a shift toward value-oriented stocks, while local investors turned attention to next week’s bank earnings.
The securities firm set a support level for the SET Index at 1,550 – 1,555 points, and a resistance level at 1,565 – 1,570 points.
Daol Securities anticipates the Thai bourse to move sideways-down, in line with global markets that shifted into risk-off mode after the U.S. CPI report. The firm noted that the two-year U.S. bond yield edged higher, while the 10-year yield declined toward the market close.
A stronger U.S. dollar was also seen weighing on capital flows into emerging markets, the brokerage remarked. Although foreign investors were net buyers of Thai equities in the previous session, Daol stated that demand remained concentrated in large-cap stocks, particularly energy names.
The Thai market still lacked a clear fresh catalyst as investors moved into the corporate earnings reporting period, the analyst added.
Yesterday, Thailand’s SET Index closed at 1,575.88 points, increasing by 4.14 points or 0.26%, with a trading value of THB 80.64 billion.
