Thai stocks closed down 2.69 points in the morning session, driven by selling in the energy and electronics sectors and a shift towards laggard stocks.

Thai stocks closed the morning session on June 16th at 1,589.03 points, down 2.69 points, with a trading value of 39,884 million baht. Selling pressure was driven by a "sell on fact" reaction after the market had already absorbed positive news regarding the US-Iran upcoming MOU to end the war and reopen the Strait of Hormuz this Friday. Meanwhile, sector rotation led to selling in energy and electronics stocks and a shift towards laggard stocks.

The Stock Exchange of Thailand (SET) index closed this morning, June 6, at 1,589.03 points, down 2.69 points (-0.17%), with a trading value of approximately 39,884 million baht.

Mr. Veerawat Virojphoka, Assistant Managing Director, Securities Analysis Department, FSS International Investment Advisory Co., Ltd. It was reported that the Thai stock market traded sideways this morning, after several weeks of upward movement in response to expectations of a resolution to the Middle East conflict. As a result of the upcoming signing of a memorandum of understanding (MOU) between the US and Iran to end the war and the full reopening of the Strait of Hormuz to shipping on Friday, June 19th, the market did not experience a strong rally, instead reacting to "sell on fact" pressure.

Furthermore, this morning we saw a sector rotation, shifting away from previously rising stocks such as energy and electronics components towards lagging stocks like finance, retail, and food. The market is awaiting the Federal Reserve (Fed) meeting; while expectations are that interest rates will remain unchanged, attention is focused on the first statement from Fed Chairman Kevin Warsh regarding any signals about the future direction of interest rates. Currently, the market sees a lower-than-60% chance of the Fed raising interest rates this year.

For the afternoon session, the index is expected to continue trading sideways, with support estimated at 1,585 points and resistance at 1,595 – 1,600 points.

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