Brokers project neutral outlooks for the Thai stock market on Thursday, pointing to pressure from rising U.S. bond yields and renewed foreign selling. Investors continue to monitor the domestic earnings season, although risk appetite may potentially be hampered by a high-profile earnings shortfall.
Tisco Securities expects the Thai benchmark to trade sideways-to-sideways-down. The brokerage cited U.S. bond yields climbing above 5% as a key drag, despite the Federal Reserve leaving interest rates unchanged as anticipated.
The analyst noted that the Fed’s latest communication still left room for another rate increase at its December meeting. The firm also said foreign investors had returned to net selling, adding to market pressure.
Earnings risk remains another factor limiting appetite for Thai stocks. Tisco said investors are likely to stay selective while listed companies release quarterly results, with SCC’s weaker-than-expected numbers potentially weighing on related share prices.
The securities firm set a support level for the SET at 1,550 – 1,555 points, and a resistance level at 1,590 points.
Daol Securities also anticipates the SET bourse to move sideways. It said the Fed decision was in line with expectations, while U.S. technology earnings from Alphabet and Microsoft were mixed, leaving investors focused on upcoming results from other companies.
For the Thai market, Daol said there are no fresh catalysts at present. Trading is expected to remain earnings-driven, with speculative interest concentrated in stocks whose results are expected to be strong.
Yesterday, Thailand’s SET Index closed at 1,566.10 points, decreasing by 8.92 points or 0.57%, with a trading value of THB 65.44 billion.
