The Thai stock market, represented by the Stock Exchange of Thailand (SET) index, is poised to test the significant 1,600-point resistance level, having recently ticked higher to close just above the 1,590-point plateau. Following a two-day winning streak that saw the index jump almost 50 points or 3.2 percent, the SET concluded Thursday’s trading session at 1,593.56 points, signaling potential for continued, albeit mild, upside in the immediate term, according to RTTNews.com.
SET’s Recent Performance and Sectoral Strength
Thursday’s session marked a modest gain for the SET, rising 5.33 points to settle at 1,593.56. Trading activity saw the index fluctuate between an intraday low of 1,583.28 and a high of 1,596.56. Market breadth was positive, with 270 gainers outpacing 185 decliners, while 205 stocks remained unchanged. The day’s trading volume reached 10.590 billion shares, valued at 92510 billion baht. This upward movement was broadly supported by strong performances across several key sectors, including food, consumer, finance, resource, and service industries.
Key Stock Movements Highlight Domestic Momentum
Several prominent Thai companies contributed significantly to the SET’s advance. In the finance sector, Bangkok Bank soared by 6.11 percent, Kasikornbank surged 6.88 percent, Krung Thai Bank accelerated 4.61 percent, Krung Thai Card rallied 3.76 percent, and both Siam Commercial Bank and TTB Bank collected 4.07 percent. Consumer-related stocks also saw robust gains, with CP All Public vaulting 3.74 percent and Charoen Pokphand Foods spiking 3.57 percent.
Other notable gainers included Advanced Info, which expanded 1.38 percent, Banpu advancing 0.93 percent, Bangkok Dusit Medical improving 2.07 percent, Bangkok Expressway up 0.81 percent, B. Grimm climbed 1.18 percent, BTS Group increased 192 percent, Energy Absolute added 0.68 percent, Gulf jumped 2.44 percent, PTT Oil & Retail strengthening 1.63 percent, Thai Oil rising 0.51 percent, and True Corporation jumping 2.36 percent. Conversely, some large-cap stocks experienced declines, including Thailand Airport skidding 1.16 percent, Asset World and PTT Exploration and Production both losing 0.76 percent, PTT Global Chemical sinking 0.75 percent, SCG Packaging dropping 0.86 percent, and Siam Concrete slumping 0.82 percent. PTT remained unchanged.
Global Market Influences and U.S. Data Impact
The broader global market sentiment for Asian bourses remains ‘murky,’ with potential upside capped by weakness observed in technology shares. European markets closed higher, while U.S. bourses presented a mixed picture, suggesting Asian markets are likely to ‘split the difference.’
The lead from Wall Street offered little definitive direction for Asian traders. Major U.S. averages opened higher on Thursday but experienced a slump following the release of critical U.S. jobless data. Despite the initial dip, markets eventually recovered to finish mixed. The Dow Jones Industrial Average notably jumped 594.83 points or 1.14 percent, closing at 52,900.07. In contrast, the NASDAQ Composite tumbled 207.36 points or 0.80 percent, ending at 25,832.67. The S&P 500, however, perked a marginal 0.01 point or 0.00 percent, closing at 7,483.24.
U.S. Economic Indicators and Federal Reserve Outlook
The initial market reaction on Wall Street was heavily influenced by new economic data. The Labor Department reported that employment in the U.S. increased ‘much less than expected’ in June. This lower-than-expected payrolls data subsequently caused markets to ‘tone down fears of an immediate rate hike by the Federal Reserve,’ contributing to the later recovery in sentiment.
Further economic reports from the U.S. Commerce Department indicated a ‘steep drop in new orders for U.S. manufactured goods in May,’ primarily attributed to a ‘sharp pullback in new orders for durable goods.’ Despite these manufacturing concerns, first-time claims for U.S. unemployment benefits ‘unexpectedly edged lower’ last week, presenting a mixed economic landscape.
Commodity Market Activity
In the commodities market, crude oil prices registered a slight increase on Thursday. West Texas Intermediate (WTI) crude for August delivery was up $0.05 or 0.07 percent, settling at $68.63 per barrel. This modest rise occurred amidst contradictory remarks from the U.S. and Iran regarding the management of the Strait of Hormuz, a critical global shipping lane.
As the Thai market looks towards Friday’s trading, the SET’s ability to sustain its momentum and decisively breach the 1,600-point resistance will be a key focus for investors. While domestic sector strength, particularly in finance and consumer goods, provides a strong foundation, the ‘murky’ global forecast and the mixed signals from U.S. economic data and equity markets suggest that any continued upside for Thai shares may indeed be mild, requiring careful navigation of external headwinds.
