Thai Stocks Close Higher as US Output Shrinks and Middle East Conflict Remains Stable
The Thai stock market closed trading on October 27, 2023, with a notable increase of +17.01 points or +1.24%, reaching a closing value of 1,388.23 points. This positive trend was attributed to the recovery of regional stock markets following better-than-expected US GDP figures. The market responded to the possibility of the Federal Reserve maintaining high interest rates for an extended period. Although concerns of a war between Israel and Hamas persist, the conflict has not yet spread to neighboring countries.
Looking ahead to next week’s investment outlook, the market is anticipated to fluctuate within the range of 1,370-1,400 points. However, if it surpasses a 5% increase, the support level at 1,350 points will be crucial. Conversely, if it falls below a 4.8% increase, it may push the SET up to 1,430 points.
Market Summary
The SET100 index rose by 27.13 points or 1.45% to close at 1,904.44 points. The SET50 index also experienced a positive increase of 12.37 points or 1.46%, closing at 859.26 points. Moreover, the market index closed with a gain of 4.12 points or 1.04%, reaching 399.90 points.
Regarding trading volume, domestic investors experienced net sales of over -2,167.95 million baht, while securities companies recorded net sales of over -377.22 million baht. On the other hand, foreign investors made net purchases of more than +1,328.70 million baht, and institutional investors reported net purchases of over +1,216.48 million baht.
Top Securities in Trading Value
- CPALL: The trading value was 2,055.74 million baht, closing at 55.00 baht, down 0.25 baht.
- KBANK: The trading value was 1,997.53 million baht, closing at 132.00 baht, an increase of 2.50 baht.
- SCB: The trading value was 1,785.23 million baht, closing at 100.00 baht, an increase of 2.75 baht.
- PTT: The trading value was 1,600.86 million baht, closing at 33.50 baht, an increase of 0.75 baht.
- BBL: The trading value was 1,418.50 million baht, closing at 158.50 baht, an increase of 0.50 baht.
SET100 Index Performance
The top five gainers in terms of positive price increases were:
- SCC: Closed at 293.00 baht, up 6.00 baht or 2.09%.
- DELTA: Closed at 76.25 baht, up 4.00 baht or 5.54%.
- EGCO: Closed at 121.00 baht, up 3.00 baht or 2.54%.
- KCE: Closed at 51.75 baht, up 2.75 baht or 5.61%.
- CBG: Closed at 67.25 baht, up 2.75 baht or 4.26%.
Conversely, the five sites with the largest price declines in the SET100 index were:
- BH: Closed at 256.00 baht, down 2.00 baht or 0.78%.
- MEGA: Closed at 41.75 baht, down 1.50 baht or 3.47%.
- BDMS: Closed at 26.25 baht, down 0.50 baht or 1.87%.
- THG: Closed at 62.50 baht, down 0.50 baht or 0.79%.
- PSL: Closed at 8.60 baht, down 0.30 baht or 3.37%.
Mr. Sarawut Techochawalit, Senior Director of the Securities Analysis Department at RHB Securities (Thailand), noted that the Thai stock market demonstrated a positive rebound in the late afternoon, aligning with regional markets. The shrinking yield on the US 10-year government bond, due to better-than-expected US GDP figures, raised concerns of extended steady interest rates by the Federal Reserve in next week’s meeting. The decrease in bond yields is considered a slight positive sign for the stock market. However, Mr. Sarawut mentioned that the impact of the conflict in the Middle East on the market remains stable, with Israel yet to initiate a ground offensive in Gaza.
“Stocks that are expected to benefit from a slowdown in bond yields, such as power plants, silver, and large stocks that experienced significant declines today, have recovered and received buybacks. On the other hand, the retail sector has seen limited improvements due to the unclear digital currency policy,” concluded Mr. Sarawut.
Looking ahead, market conditions will depend on the progress of the Middle East conflict and bond yields. If the bond yields fluctuate within the range of 4.8-5%, the SET is expected to swing between 1,370-1,400 points. However, if it exceeds 5%, the SET may drop to the support level of 1,350 points. On the other hand, if it falls below 4.8%, the SET has the potential to reach 1,430 points. It is recommended to invest in power plant, financial, and petrochemical stocks.
“There are currently no new domestic factors. It is advisable to monitor US and domestic bond yields. However, Thai bond yields rarely fluctuate due to news of a decline in the scale of digital wallet distribution, thereby reducing market volatility. We should closely follow the progress of the digital wallet project next week,” concluded Mr. Sarawut.
Thai stocks turned around and closed +17.01 points. Brokers pointed out that Thai stocks turned around and bounced strongly in the evening before the market closed to receive the news. US Output is shrinking This is in line with regional stock markets after US GDP may recover better than expected. This can cause the Fed to maintain high interest rates for a long time. But it is a small positive sign for the stock market. Although there are concerns about war between Israel and Hamas it has not yet spread to neighboring countries. Looking at next week’s investment frame, it will fluctuate in the range of 1,370-1,400 points, but if it breaks through 5% again, look at the support level at 1,350 points and if it falls below 4.8%, it may push the SET up to 1,430 points.
The Thai stock market closed for trading on October 27, 2023, increasing by +17.01 points or +1.24%, closing at 1,388.23 points with a trading value of 41,247.37 million baht, while the overall trading stock today The index swung to the side before recovering in the evening before the market closes. During the day the index rose to a maximum of 1,390.79 points, in the opposite direction it fell to a minimum of 1,366.19 points.
Meanwhile, the number of securities that changed today increased by 329 securities, remained unchanged by 148 securities, and decreased by 168 securities.
In terms of trading volume classified by investor group, it was found that Domestic investors made net sales of more than -2,167.95 million baht and securities company accounts made net sales of more than -377.22 million baht. On the other hand, it was found that investors foreign Net purchase of over +1,328.70 million baht and net purchase of institutional investors of over +1,216.48 million baht
As for the securities with the highest trading value, 5 securities
1.CPALL trading value 2,055.74 million baht, closed at 55.00 baht, down 0.25 baht.
2.KBANK trading value 1,997.53 million baht, closed at 132.00 baht, an increase of 2.50 baht.
3.SCB trading value 1,785.23 million baht, closed at 100.00 baht, an increase of 2.75 baht.
4.PTT trading value 1,600.86 million baht, closed at 33.50 baht, an increase of 0.75 baht.
5.BBL trading value 1,418.50 million baht, closed at 158.50 baht, an increase of 0.50 baht.
In terms of the SET100 index, the 5 sites with the most positive price increases are:
1.SCC closed at 293.00 baht, up 6.00 baht or 2.09%.
2.DELTA closed at 76.25 baht, up 4.00 baht or 5.54%.
3.EGCO closed at 121.00 baht, up 3.00 baht or 2.54%.
4.KCE closed at 51.75 baht, up 2.75 baht or 5.61%.
5.CBG closed at 67.25 baht, up 2.75 baht or 4.26%.
In terms of the SET100 Index, the five sites with the biggest price declines are:
1.BH closed at 256.00 baht, down 2.00 baht or 0.78%.
2.MEGA closed at 41.75 baht, down 1.50 baht or 3.47%.
3.BDMS closed at 26.25 baht, down 0.50 baht or 1.87%.
4.THG closed at 62.50 baht, down 0.50 baht or 0.79%.
5.PSL closed at 8.60 baht, down 0.30 baht or 3.37%.
While the SET100 index closed at 1,904.44 points, an increase of 27.13 points or 1.45%, the SET50 index closed at 859.26 points, an increase of 12.37 points or 1.46%, and the market index closed at 399.90 points, an increase of 4.12 points. or 1.04%.
Mr said. Sarawut Techochawalit, Senior Director of Securities Analysis Department, RHB Securities (Thailand), that the Thai stock market today bounced back better in the late afternoon. In line with this, most regional markets have a positive direction. This is because the yield on the US 10 year government bond (Bond Yield) has shrunk due to the better than expected US gross domestic product (GDP) figure. Most investors are worried that next week’s Federal Reserve (Fed) meeting could indicate that interest rates will remain steady for longer than expected. When the bond yield shrinks, it’s a slightly positive sign for the stock market. Including the conflict situation in the Middle East. Israel has yet to launch a ground offensive in Gaza. So it hasn’t spread yet.
“Stocks that are expected to benefit from a slowdown in bond yields, such as power plants, silver, and large stocks whose prices have fallen significantly today have recovered and received buybacks. Meanwhile, the retail sector has not improved much. Because the digital currency policy is still unclear.”
As for next week’s market outlook, the market situation will depend on the progress of the war in the Middle East. and Bond Yield If the bond yield changes in the range of 4.8-5%, the SET is expected to swing 1,370-1,400 points, but if it is more than 5%, the SET is expected to go down to the support level of 1,350 points And if it is below 4.8%, the SET has a chance to go up Going to 1,430 points, recommending stocks in the power plant, financial and petrochemical groups .
“There are still no new factors in the country. Recommended following US and domestic bond yields. But Thai bond yields rarely fluctuate on news of a decline in the size of digital wallet distribution. make the swing lighter So, we have to follow the progress of the digital wallet project again next week,” concluded Mr Sarawut.
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