SET may hit 1,550-1,600
THE SET INDEX may continue rallying to a plateau of 1,550-1,600 points during the rest of this year, driven by a robust recovery of the domestic economy, according to SCB Securities.
Isara Ordeedolchest, senior vice president of investment strategy, said yesterday that higher-than-expected growth in gross domestic product in the first quarter was a good sign of an uptrend for the rest of the year.
Driving the economy further would be robust tourism revenue, increased state investment and accelerated private consumption upon the recovery of farm incomes.
As of Wednesday, the SET Index had risen by 14.72 per cent this year. The SET yesterday gained 11.08 points to close at 1,488.69, boosted mainly by gains in the US stock markets in the past few days. Foreigners have been net-buyers of Thai shares, with net buys of Bt4 billion yesterday alone and Bt18 billion this month.
Despite the bullish view, the market will remain volatile, moving sideways from the first half of this year because of external risk factors, particularly euro-zone uncertainties and the wavering recovery of the global financial market and economy, Isara said.
“The United Kingdom’s decision to leave the European Union signals long-term pressure on worldwide trade because global trade may face more obstacles in the form of nationalism, conservatism and trade barriers.
“It may also pave the way for other EU members to ponder referendums similar to that of the UK, which is considered a risk factor for investors in the near future,” he said.
SCB Securities’ research group also advised stock investors to focus on “domestic plays” that could ride on the domestic economic recovery.
