Thailand's SET Index Flirting With 1,300 Support Level—Is the Bounce Real?

The Thai stock market has been taking L’s for five consecutive sessions, sliding over 15 points and wiping out 1.2% in the process. The SET is now hovering just below the psychologically important 1,300 mark, but bulls are betting on a rebound when trading kicks off Thursday.

Yesterday’s Damage: The index closed at 1,295.29, down 1.38 points (0.25%) on Wednesday. Food, consumer goods, finance, industrials, and property stocks all got hammered. Trading volume hit 7.434 billion shares worth 43.468 billion baht, with twice as many stocks declining (274) versus advancing (177).

Mixed Signals in the Stock Moves: Advanced Info surged 3.30%, while Energy Absolute spiked 2.78% and Gulf jumped 2.34%. On the flip side, PTT Global Chemical got absolutely wrecked, plunging 6.76%, and Krung Thai Card tanked 2.63%. BTS Group also took a hit, dropping 2.76%.

Why the Optimism for Thursday? Wall Street ended Wednesday firmly in the green—Dow +0.48%, S&P 500 +0.37%, NASDAQ +0.65%. The move was fueled by bargain hunting after Tuesday’s selloff plus solid U.S. economic data: ADP payroll numbers crushed expectations, and the ISM services PMI signaled expansion returned in October. This global risk-on mood is expected to spill into Asian markets at the open.

Oil’s Mixed Picture: Crude slipped Wednesday on supply glut concerns. WTI December contract dropped $0.92 (-1.52%) to $59.64/barrel, which could offer some relief for energy-dependent economies like Thailand.

The Real Question: Can the SET actually hold 1,300, or is this just a dead cat bounce before the next leg down?