Brokerages project major SET index swings in June

Despite renewed hope for US-China trade negotiations and reduced concerns over Thailand's credit rating, the local stock market is expected to experience notable swings this month as domestic political risks escalate, say analysts.

- NUNTAWUN POLKUAMDEE

The Stock Exchange of Thailand (SET) index dipped by nearly 1.8% to less than 1,300 points in mid-afternoon trade yesterday as global bourses surged after White House spokesperson Karoline Leavitt announced that President Donald Trump and Chinese President Xi Jinping are likely to speak by the end of this week.

Market concerns about the Thai credit rating should ease after S&P Global Ratings reaffirmed on June 2 Thailand's sovereign credit rating at BBB+ with a stable outlook, easing fears of a downgrade, said analysts.

KGI Securities (Thailand) maintains a cautiously optimistic outlook for June, citing potential progress in US-China trade negotiations as several international media outlets reported Trump may soon meet with Xi, raising hopes of a breakthrough in trade talks.