Thai stock market expected to trade sideways amid oil price support

The Thai stock market is expected to trade within a sideways range, with analysts projecting the SET Index to fluctuate between 1,600 and 1,640 points.

Market sentiment is being influenced by several international and domestic factors. High global crude oil prices are providing support to the energy and petrochemical sectors, which carry significant weight in the Thai index. However, investors remain cautious due to high U.S. bond yields and geopolitical tensions, including economic pressures on Iran and missile testing by Russia near disputed islands near Japan.

Key upcoming events include the Jackson Hole meeting, where investors will look for signals regarding Federal Reserve monetary policy and interest rate directions. Domestically, the ‘Thailand Focus 2026’ event is expected to provide some market support. Additionally, recent FTSE rebalancing, which saw several Thai stocks downgraded, may create localized negative sentiment for specific equities, though analysts suggest the overall impact on the broader market may be limited.