Thai Equity Rally Faces Headwinds Amid Global Profit-Taking

The Stock Exchange of Thailand (SET) closed slightly higher on Wednesday, ending at 1,141.58, a gain of 0.21%. This move caps a three-session rally that has seen the index climb more than 35 points, or approximately 2.5%, placing the market just above the 1,140-point plateau. However, the momentum is expected to stall on Thursday. The outlook for Asian markets remains cautious as investors engage in profit-taking, following a similar trend observed in European and U.S. markets. The SET's modest gain on Wednesday was the result of a tug-of-war between sectors; gains in technology, industrial, and service sectors were offset by weakness in finance, food, and consumer stocks. Trading activity was significant, with volume reaching 7.042 billion shares valued at 26.216 billion baht. Among the most active tickers, SCG Packaging surged 5.56% and Siam Concrete rose 4.00%, while Energy Absolute plunged 3.27% and B. Grimm surrendered 2.80%. The soft lead from Wall Street followed a late-session decline, despite early optimism sparked by a U.S. Labor Department report showing consumer prices rose slightly less than expected in May. Additionally, an agreement in principle between U.S. and Chinese officials to ease trade disputes provided temporary support to the major averages before the late swoon. In the commodities space, West Texas Intermediate (WTI) crude for July delivery jumped 5.11% to settle at $68.30 per barrel. This surge was driven by the U.S.-China trade developments and escalating tensions between the U.S. and Iran regarding a nuclear agreement.