Thai stocks closed up 8.45 points in the morning session, easing concerns about war and boosted by continued strong performance from DELTA shares. Brokers warn of potential volatility towards the end of the market.
Thai stocks closed the morning session on May 29th at 1,577.42 points, up 8.45 points, with a trading value of 35,111 million baht. This was driven by expectations of US-Iran peace negotiations. DELTA also showed gains, defying the electronics sector's downturn, in response to MSCI's increased weighting. However, caution is advised regarding potential late-market volatility and selling pressure as investors reduce risk before the long holiday.
The Stock Exchange of Thailand (SET) index closed this morning, May 29, at 1,577.42 points, up 8.45 points (+0.54%), with a trading value of approximately 35,111 million baht.
In the morning session, there was one large block trade (BIG LOT) of one security, MICRON01, with the highest value at 7.61 million baht and an average price of 19.03 baht per share.
Kitiphan Prapaisalkit, Deputy Managing Director of Securities Analysis at UOB Kay Hian (Thailand), said that the Thai stock market rose quite well this morning, in line with most regional stock markets, due to positive expectations regarding negotiations between the United States and Iran.
This morning, there was profit-taking in sectors that benefit from the war, such as energy and petrochemicals, as well as other stocks that had been speculated on previously. There was also some selling pressure on electronics components stocks after the Stock Exchange of Thailand (SET) warned investors yesterday to consider fundamental data before trading stocks in this sector because their prices had risen too sharply.
However, DELTA continued to fluctuate into positive territory due to the MSCI rebalancing, which will use today's closing price to increase the weighting of DELTA shares.
Furthermore, the stocks that rose this morning were in sectors that have been significantly impacted by the Middle East conflict in recent times. There was also buying interest in defensive sectors such as banks, retail, healthcare, and power plants, reflecting a cautiously positive market outlook. This is because there is still a risk of downward revisions to earnings estimates for listed companies in Q2 69 due to the impact of costs resulting from the war.
The afternoon trend is expected to remain positive, but caution is advised regarding potential volatility towards the end of the trading day due to portfolio adjustments following the MSCI Rebalance. Additionally, the Thai stock market will be closed next Monday, which may lead investors to reduce their holdings towards the end of the day. Support is estimated at 1,570 points, and resistance at 1,583-1,590 points.
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