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Thai Stocks Strain: AI Bubble, Politics Cause Concern

Thai Stocks Strain: AI Bubble, Politics Cause Concern

Post Today•Economy•1d ago

Reader Briefing

Concerns over an AI bubble and domestic political instability are creating pressure on the Thai stock market, driving cautious sentiment and leading to warnings against speculation.

  • •Thai stock market faces pressure from concerns about an AI bubble and potential political instability.
  • •US CPI data for January came in lower than expected, boosting hopes for a Federal Reserve interest rate cut in Q2/69.
  • •Analysts are cautious about profit-taking as the market trades near historical average valuations.

Overview

  • •The Thai stock market is experiencing a tightening, with concerns about an AI bubble and political unrest impacting investor sentiment.
  • •Worries about an AI bubble and AI Disruption are pressuring technology stocks.
  • •US CPI in January increased by 0.2% MoM and 2.4% YoY, below market expectations.
  • •The US Federal Reserve (FED) is expected to cut interest rates in Q2/69.
  • •Domestic analysis continues to recommend caution regarding profit-taking after recent market rallies driven by expectations of political stability post-election.
  • •The market is trading near its historical average Fwd PE of 14.9x, potentially triggering profit-taking around the 1,450-1,500 point level.
  • •The IMF has lowered Thailand's GDP forecast for '69 to 1.6% YoY due to external pressures and weak domestic demand.
  • •Analysts recommend monitoring the Q4/68 GDP figures, expected at +0.6% QoQ and +1.3% YoY, with full-year '68 projected at 2.1% YoY.

Full article content is available on the original source.

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Source: Post Today (Original)

Key Quotes

บล.ไอร่า (IRA Securities)
"The analysis team is concerned about the possibility of unrest outside parliament, especially regarding the request for a recount of election ballots and declaring the election void, which is expected to cause some market noise in the near future."
ฝ่ายวิเคราะห์มีความกังวลต่อโอกาสในการเกิดความไม่สงบนอกสภาฯ โดยเฉพาะประเด็นการร้องขอให้เกิดการนับบัตรเลือกตั้งใหม่ และการให้การเลือกตั้งเป็นโมฆะ คาดจะเป็น Noise รบกวนตลาดได้บ้างในระยะถัดไป
บล.ไอร่า (IRA Securities)
"The analysis team has a slightly negative view on the International Monetary Fund (IMF) lowering Thailand's GDP forecast for '69 to only 1.6% YoY due to external pressures and weak domestic demand."
ฝ่ายวิเคราะห์มีมุมมองเชิงลบอ่อนๆต่อการที่กองทุนการเงินระหว่างประเทศ (IMF) ปรับลดคาดการณ์ GDP ปี69 ของไทยเหลือเพียง 1.6%YoY จากแรงกดดันจากภายนอกและอุปสงค์ภายในประเทศยังอ่อนแอ

Key Entities

Organization

IRA Securities(บล.ไอร่า)
A securities firm providing analysis on the Thai stock market and economic outlook.
Federal Reserve(FED)ℹ️
The central bank of the United States, whose potential interest rate cuts are being anticipated by the market.
International Monetary Fund(IMF)ℹ️
An international financial institution that has revised down Thailand's GDP growth forecast.
DELTA Electronics(DELTA)
A company whose Q4/68 earnings report showed a profit of 7.26 billion baht, driven by data center solutions and cloud CAPEX.
Advantest Corp.(ADVANT23)ℹ️
A company with a positive outlook, recommended for speculation, driven by demand for chip testers for Custom ASICs and SoCs.

Context

Artificial Intelligence(AI)ℹ️
A technological trend causing concerns about market bubbles and disruption in the technology sector.

Place

United States(สหรัฐฯ)ℹ️
The country whose Consumer Price Index (CPI) data is influencing global market expectations regarding interest rates.