Stock slide stalls: Thai stock market slump set to stabilise as analysts predict limited decreases

The Stock Exchange of Thailand (SET) index has been subjected to a downward revision this year, dipping to a three-month low of roughly 1,470 points. This has led market analysts to believe that further decreases are now limited.

Kasikorn Securities (KSEC) consequently altered its SET index target to 1,544 points by the close of 2023, a significant drop from the initially projected 1,666 points. The revision is a reflection of KSEC’s cautious stance on the rise in bond yields predicted to negatively impact the price-to-earnings ratio of the Thai stock exchange.

Inflationary pressure from elevated oil prices and a larger government budget deficit to support economic stimulus measures, which will result in higher bond supply, will likely drive Thailand’s interest rates to continue to climb, KSEC explained.

KGI Securities (Thailand) reported a…