Thai stocks rebounded while oil and gold stalled as planned talks between Russia and Ukraine improved market opinion.
The SET Index closed at 1,647.08 points, up 3.44 points or 0.21% on Thursday, with a trading value of 100 billion baht.
Foreign funds began to reenter the Thai stock market after Russia sent a minister to peace talks with Ukraine and President Volodymyr Zelensky said he would no longer press Ukraine to join the North Atlantic Treaty Organization.
The prices of crude oil and gold fell sharply on Thursday, but inflation remained high, hampering a strong recovery in the global stock markets.
The domestic gold price decreased by 500 baht on Thursday in the first adjustment, with a bid price of 30,800 baht and an asking price of 30,900 baht. The spot gold price stood at US$1,978 an ounce as of 12.30pm on Thursday.
People reportedly flocked to sell the metal at gold shops in Yaowarat, Bangkok's Chinatown, as the gold price remained high despite the drop.
Meanwhile, the WTI crude oil price fell sharply by $15 on Wednesday night to close at $108.7 a barrel as many countries have accelerated crude production and the United Arab Emirates is preparing to push Opec to increase production.
Asia Plus Securities (ASPS) recommends investing in sectors that have been hit hard by the Russian-Ukrainian war, but have high potential to rebound on recent positive sentiments such as electronics, petroleum, banking, construction, agriculture, property, food and power plants.
Stocks in these sectors have fallen sharply during the conflict and have a chance to recover when the situation improves, said the brokerage.
For domestic stocks, ASPS said stocks with good fundamentals and high potential for recovery that have cheap prices include Global Power Synergy (GPSC), Minor International (MINT) and Siam Commercial Bank (SCB).
Finansia Syrus Securities (FSS) said after the conflict between Russia and Ukraine begins to ease, investors should focus more on negative factors like inflation and the tightening of US central bank monetary policy, including the first rate hike likely next week.
FSS recommends focusing on value stocks and domestic plays that are supported by the domestic economic recovery. The sectors that are expected to outperform the market in the long term are banks, retail, real estate, food and beverages.
KTBST Securities said stock market sentiment is temporarily improving because investors believe the aggression between Ukraine and Russia is beginning to wane.
The broker recommends accumulative buying of KCE Electronics, Indorama Ventures, Charoen Pokphand Foods and SCG Packaging.
"If the stock market improves, it will be negative for gold, bonds and oil stocks. During that time, investors can take profits or hedge," said KTBST.