The Thai stock market experienced notable fluctuations today, closing at 1,188.41 points, down 15.31 points or 1.27% from the previous close, with total trading value reaching 45.01 billion baht.
This decline, observed on March 3, 2025, aligns with patterns across regional markets influenced by external factors, primarily the impending implementation of import tax measures by Canada and Mexico, which are expected to take effect tomorrow. Analysts suggest this development adds pressure to investor sentiment, especially with major stocks such as DELTA, ADVANC, and CPALL facing selling pressure.
According to the report from InnovestX Securities, the Thai market fell below the 1,200-point mark. Investors exhibited concerns about external economic uncertainties, which exacerbated local market volatility.
"The Thai stock market faces regional declines influenced by external factors such as import tax policies and political movements, which will affect investor sentiment," expressed market analysts.
Notably, there was significant buying activity within sectors like fashion, construction materials, and banking, which played some role in offsetting losses. On the contrary, technology, retail, and media sectors were under substantial selling pressure post-earnings announcements.
Stocks experiencing the most significant gains included CPN, which rose by 3.05% after reporting record earnings, and ERW, which gained 4.58% as it moves forward with plans to open new hotels to meet growing demand. Other gainers included CENTEL and AURA, each showing positive momentum based on their respective earnings announcements.
On the downside, stocks under pressure included DELTA, which dropped 7.77% amid trade war concerns affecting market sentiment, and CRC, which fell 6.72% following disappointing Q4 earnings results.
While some sectors struggled, analysts from Trinity Securities noted, "Our analysis suggests the market will fluctuate based on upcoming political factors and global economic policies." They highlighted the importance of closely monitoring the political climate as the Thai Parliament is scheduled for discussions on no-confidence motions against the Prime Minister later this month, which could cause additional volatility.
Looking forward, the SET index is expected to face substantial fluctuations due to both local and international pressures. The analysts set support levels at 1,177 points, which corresponds to valuation lows experienced during the COVID-19 period, with stronger support anticipated at 1,150 points. Conversely, the initial resistance levels are identified at 1,230 points and another key resistance at 1,270 points.
Investors are encouraged to adopt mixed strategies, balancing high-risk assets with safer options. While bond yields have stabilized, maintaining some exposure to bond equivalents like REITs and IFFs remains prudent amid high uncertainty.
Sector recommendations for March highlight domestic plays showing lagging valuations, including CPALL and HMPRO, alongside stocks expected to benefit from declining bond yields, such as TIDLOR. The market also anticipates earnings from potential new entrants to the SET50 index as the month progresses.
Overall, the current sentiment within the Thai market remains cautious. Beyond immediate concerns of tax reforms and political maneuverings, the broader economic outlook is clouded by global uncertainties. Investors are advised to remain vigilant as the situation develops.