SET extends its gain
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The Stock Exchange of Thailand index gained another 1.09 per cent on Wednesday, extending the rebound from the 3.3 per cent loss on Friday.
The index closed 16.84 points higher to 1,560 points on turnover of Bt67.5 billion. During the day, it peaked at 1,569.57 points.
Following the 50-points loss on Friday - the biggest single-day fall since 2008, the market has staged a strong rebound.
Tisco Securities said in its research note that the movement was in line with its forecast. It viewed that the correction presented a good opportunity for share accumulation and the house maintained its SET index target for this year at 1,650 points.
Positive factors include Thailand's low debt to GDP, relatively low foreign holdings of Thai bonds, and quantitative easing in developed markets. Risk factors include the baht appreciation, low fuel prices which dampen the attractiveness of big-cap energy stocks, and a possible drop in listed companies' earning and GDP growth rate.
