Thai Shares May Take Further Damage On Thursday

The Thai stock market (SET) closed slightly lower, down 0.23% to 1,160.74, influenced by losses in food, finance, resource, and technology sectors, though partially offset by gains in consumer, industrial, property, and service stocks. Asian markets are expected to open lower following a soft lead from Wall Street, which saw the Dow, NASDAQ, and S&P 500 all decline amid uncertainty over U.S. trade policies and ahead of Nvidia's earnings release; Nvidia's strong earnings beat may lend support to technology shares going forward.

Analysis

The Thai stock market (SET) has exhibited weakness, declining nearly 1.5% or almost 20 points over two consecutive sessions to hover just above the 1,160-point level. On Wednesday, the SET edged down a further 0.23%, or 2.68 points, to close at 1,160.74, with trading volume at 8.233 billion shares valued at 36.281 billion baht. Sectoral performance was mixed; losses in food, finance, resource, and technology shares—including a 1.37% retreat for Advanced Info and a 3.11% plunge for Kasikornbank—were partially offset by gains in consumer, industrial, property, and service sectors, with notable advancers like Siam Concrete (+5.36%) and SCG Packaging (+4.22%).

This domestic weakness is set against a backdrop of an anticipated soft opening for Asian markets, influenced by negative closes on Wall Street where the Dow, NASDAQ, and S&P 500 fell by 0.58%, 0.51%, and 0.56% respectively. The U.S. market downturn, reflected in a -0.6 sentiment score for associated ETFs (DIA, QQQ, SPY), stemmed from trader caution ahead of Nvidia's (NVDA) earnings and persistent uncertainty surrounding U.S. trade policies. However, Nvidia subsequently reported earnings and revenue that beat expectations, carrying a positive sentiment (+0.8) and potentially offering future support to technology shares. Separately, crude oil prices saw a notable increase, with WTI for July delivery rising 1.43% to $61.76 per barrel, driven by OPEC's plans for 2027 output quotas, reflected in a +0.6 sentiment for USO. The overall market sentiment remains moderately negative (-0.5) with an uncertain tone, signaling continued investor apprehension.

Key Decisions for Investors

• Given the SET's recent decline, the negative global equity sentiment, and ongoing U.S. trade policy uncertainties, investors should adopt a cautious stance towards Thai equities in the immediate term, monitoring for stabilization before committing new capital.
• Despite broader market weakness and specific losses in Thai technology stocks, Nvidia's strong earnings beat (NVDA sentiment +0.8) may offer selective global opportunities in the tech sector; investors should scrutinize specific tech names for resilience or potential positive contagion.
• The significant uptick in crude oil prices (USO sentiment +0.6) fueled by OPEC's future production strategy suggests potential strength in energy-related assets, warranting consideration for exposure to this sector amidst the wider market caution.