FX.co ★ Thai Shares Called Rangebound Again On Tuesday

The Thai stock market experienced a downturn in two out of the last three trading sessions, following a brief rally that had seen an increase of over 20 points or 1.5 percent. Currently, the Stock Exchange of Thailand is positioned slightly below the 1,445-point level, with expectations for a potential rebound on Tuesday.

Globally, the outlook for Asian markets appears positive, buoyed by optimism regarding the worldwide economic landscape, although the potential for gains is somewhat tempered by declining oil prices. Both European and U.S. markets experienced an upswing, setting a positive precedent for Asian bourses.

On Monday, the SET recorded a modest decline, driven by losses across the consumer, industrial, resource, and technology sectors. The index decreased by 2.99 points or 0.21 percent, closing at 1,443.31, within a trading range of 1,441.86 to 1,455.39. The market saw a trading volume of 9.491 billion shares, valued at 50.452 billion baht. In terms of stock performance, there were 311 decliners, 173 gainers, and 179 stocks that remained unchanged.

Key performances included Advanced Info slipping 0.35 percent, while Thailand Airport and Charoen Pokphand Foods improved by 0.41 percent. Asset World fell by 0.56 percent, Banpu decreased by 0.83 percent, and Bangkok Bank was down 0.67 percent. Bangkok Dusit Medical experienced a downturn of 0.94 percent, Bangkok Expressway dropped by 0.65 percent, while BTS Group surged with a 3.41 percent increase. Gulf and Kasikornbank recorded gains of 0.39 percent and 0.33 percent, respectively. However, Krung Thai Card experienced a significant drop of 2.65 percent, and PTT Oil & Retail faced a steep 4.00 percent plunge. PTT also fell by 1.48 percent, with PTT Exploration and Production skidding 1.15 percent, and PTT Global Chemical declining by 0.97 percent. SCG Packaging saw a notable decline of 4.58 percent, while Siam Commercial Bank and Siam Concrete saw modest increases of 0.44 percent and 0.52 percent, respectively. True Corporation improved by 0.87 percent, and TTB Bank gained 0.56 percent, with Krung Thai Bank, B. Grimm, Energy Absolute, and CP All Public remaining unchanged.

The lead from Wall Street reflects positivity, with significant indices opening higher on Monday and maintaining upward momentum throughout the day. The Dow advanced by 440.6 points or 0.99 percent, closing at 44,736.57. Meanwhile, the NASDAQ increased by 51.19 points or 0.48 percent to finish at 20,220.36, and the S&P 500 rose by 18.03 points or 0.30 percent, ending at 5,987.37.

The stock market's upswing was fueled by a favorable response to the announcement that President-elect Donald Trump intends to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary. Bessent is perceived as supportive of the equities market and an advocate for deficit reduction, and he has proposed a gradual implementation of Trump's planned tariff increases to mitigate inflationary effects.

Nevertheless, the influx of buying interest dwindled as the day progressed, as traders exhibited caution in anticipation of the release of several key economic reports in the forthcoming days.

In the commodities market, oil prices declined sharply on Monday, driven by reports indicating a potential cease-fire agreement between Israel and Hezbollah in the coming days. West Texas Intermediate Crude oil futures for January dropped by $2.30 or 3.2 percent, settling at $68.94 per barrel.