Thai stock market expected to open lower amid rising oil prices

The Thai stock market is expected to open lower on Monday amid a backdrop of mixed global signals and rising oil prices. The Stock Exchange of Thailand has seen fluctuations over the past week, alternating between gains and losses since a three-day decline that saw the index drop more than 12 points, or 0.7 percent. Currently, the market hovers just below the 1,610-point mark, and analysts predict it will remain rangebound as investors react to external pressures.

The recent weakness in the market comes as profit-taking sets in after a brief rally in U.S. stocks, which also experienced a pullback on Friday. The Dow Jones Industrial Average fell by 107.59 points, while the NASDAQ and S&P 500 dipped slightly as well. This decline was influenced by disappointing economic indicators, including a drop in U.S. retail sales and a significant decline in consumer sentiment. As these trends ripple through the Asian markets, investors in Thailand are likely to remain cautious.

On the local front, the Thai market finished modestly lower on Friday, with the index down 5.30 points, or 0.33 percent, closing at 1,609.06. Trading volume reached 12.35 billion shares, valued at 81.76 billion baht. The session saw 329 decliners outnumbering 163 gainers, indicating a bearish sentiment among traders. The pressure on the market was evident in several sectors, including food, finance, and industrial resources, which all reported losses.

Looking ahead, the Thai economy will soon release its second-quarter gross domestic product figures, expected later today. Forecasts predict a 0.6 percent decline compared to the previous quarter, but a modest increase of 1.7 percent year-on-year. These figures could further influence market sentiment, as investors weigh domestic economic performance against global uncertainties, particularly in light of surging crude oil prices and geopolitical tensions involving the U.S. and Iran.