On Monday, FSS International Investment Advisory Securities (FSSIA) expected the Thai stock market to move sideways within the range due to lack of supporting factors despite the U.S. PCE Index, announced last Friday, being in line with market expectations. However, the peace talk between the U.S. and Ukraine leaders have yet to reach a conclusion, as such the market will continue to be weighed down by geopolitical uncertainty.
Domestically, investors will also be monitoring political developments in the country, while various listed companies are set to have their ex-dividend dates (XD) this week, potentially putting constant pressure on the market.
DAOL Securities expects the Thai market to trade with volatility due to selloffs after companies in the market announced their financial statements, with ex-dividend dates (XD) scheduled this week.
On the bigger picture, the market was pressured by domestic factors both in terms of the economy and companies’ profit outlook, as well as the depreciation of the Thai baht, slumping to THB 34.20 per USD.
Meanwhile, investors’ concerns toward U.S. trade policy have halted investment in risky assets across the globe. The impending U.S. tariffs slated to impose a 25% import duty on Mexico and Canada, and a 10% additional levy on China which will come into effect on March 4 put pressure on the global scale and accelerate inflation in the U.S. This could potentially influence the Federal Reserve interest rate decision in the March meeting.
Kingsford Securities anticipated the Thai market to be weighed down by U.S. tariff policies, suggesting divert investment into safe and high yield stocks such as BH, BDMS, ADVANC, CPALL, TLI, AP, and SPALI.
