Thai Stocks Dip on Light Trading Amid Geopolitical Jitters

The benchmark SET Index closed marginally lower today, with analysts pointing to subdued trading volumes and ongoing political and economic uncertainties

 

The Thai stock market edged lower today, with the SET Index closing down 0.91 points at 1,113.58.

 

Trading activity remained lacklustre throughout the day, a trend attributed by analysts to the absence of fresh catalysts and persistent geopolitical concerns.

 

The Stock Exchange of Thailand (SET) Index fluctuated throughout the session, reaching an intraday high of 1,119.13 points and a low of 1,112.25 points.

 

Total trading value was a modest 27,494.32 million baht, underscoring the thin volume.

 

Top Performers and Laggards

Among the most actively traded shares by value:

PTTEP closed at 110.00 baht, down 2.00 baht (1.79%).

ADVANC remained unchanged at 282.00 baht.

AOT saw a gain, closing up 1.25 baht (4.59%) at 28.50 baht.

KBANK rose 1.00 baht (0.66%) to 153.50 baht.

CPALL closed flat at 45.00 baht.
 

 

Wijit Arayapisit, an investment strategist at Liberator Securities, highlighted the continued subdued trading, with daily volumes hovering around 20,000 million baht. 

 

He noted that the index's narrow trading range, between 1,110 and 1,115 points, just 5 points either side of the open, reflected investor indecision in the face of multiple uncertainties.

  

Geopolitical and Domestic Headwinds

A primary drag on sentiment was the unresolved situation in the Middle East.

 

Despite reports suggesting Iran might be willing to de-escalate and resume nuclear talks with the US, Israel's stance remains unyielding.

 

Volatile crude oil prices also contributed to market unease, having dipped overnight before rebounding this morning.

 


"Furthermore, domestic politics remain a significant source of pressure, particularly the ongoing cabinet reshuffle," Wijit commented. "A major overhaul could potentially undermine government stability, with parliamentary support possibly coalescing around 240-250 votes."
 
 

Tourism Sector Shines

Despite the overall subdued market, the tourism sector provided a rare bright spot.

 

This positive performance was driven by the government's initiation of the "Thai Thiao Kon La Krueng" (Thai Travel Co-payment) scheme for operators.

 

Leading the gains were CENTEL, up 4%, MINT, up 3%, and ERW, which rose 2%. However, airport operator AOT faced specific headwinds despite the broader sector's strength.

 

 

Outlook for Tomorrow

Looking ahead, Wijit anticipates the market will continue to trade within its current range.

 

He forecasts a support level between 1,100-1,110 points and a resistance level at 1,130 points, which he believes will be difficult to breach.

 

The market will require clear positive catalysts to build momentum.

 

Key factors to monitor in the coming days include the US Federal Reserve's meeting on Wednesday night, further clarity on trade wars, developments in the Middle East, and progress on the domestic cabinet reshuffle.

 

A significant "unlocking factor" is also needed to restore normal trading volumes.

(2025/06/17-00:00)