Mideast conflicts, Europe unrest affect local investor sentiment
Escalating conflicts in the Middle East and spreading political unrest across Europe are weighing on global investment sentiment, leaving Thailand's stock market vulnerable to further volatility in the near term, according to Globlex Securities.
Escalating conflicts in the Middle East and growing political unrest across Europe are causing concern among global investors, raising concerns for Thailand's stock market. Globlex Securities predicts the SET index to fluctuate between 1,530 and 1,580 points this week, potentially mirroring declines in overseas equities. The situation worsened following Houthi attacks in Saudi Arabia and possible US military strikes against Iran, following the US midterm elections.
Europe faces its own challenges, with widespread protests over rising living costs and declining public services. These events have led to a loss of confidence in political and economic stability in the region. The Thai market could be negatively impacted by a weakened European demand for goods and potential disruptions to logistics networks.
Despite these risks, Globlex Securities anticipates support from domestic infrastructure spending and developments in Thailand's capital market, such as the extension of the electric train scheme and the leasing of 2,320 electric buses. Investors are advised to monitor economic data from the Bank of Thailand and key indicators from the US, Europe, and Japan.
Globlex recommends investing selectively in companies expected to benefit from government support for renewable energy, such as Gunkul Engineering, Gulf Development, and Solartron.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
