Thai shares swung sharply in the past week within a range of 1,590 and 1,620 points, tracking a similar pattern in global equities. Volatility was fuelled by macroeconomic factors following the recent US Federal Reserve meeting and diverse interpretations of future Fed policy by market participants. Meanwhile, other global risk assets such as bitcoin and gold also nosedived.
In the short run, we expect the supports at 1,530 and 1,550 to limit near-term downside for Thai shares. If the SET Index drops to those levels without material fundamental change, it could be the end of the down cycle for this year.
We expect the market to move sideways in June and possibly rebound to test the initial resistance level at 1,650 to 1,660, and then at 1,680 to 1,700. We base this on the belief…
