Saturday, October 31, 2020

SET rebounds over news of US stimulus measures

Sep 29. 2020
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By The Nation

The Stock Exchange of Thailand (SET) Index should rebound in the short term as there is limited room for it to rise, experts say.

The SET Index rose sharply on Monday after the market underwent correction for six consecutive days by 18.08 points or 1.45 per cent, closing at 1,263.02. Total transactions stood at Bt41.29 billion, most of which were mass buy-ups in energy and power plant shares.

As of 12am today, SET Index stood at 1,263.38, up 0.36 points or 0.03 per cent.

Koraphat Vorachet, director of research and investment at Capital Nomura Securities said the index rebounded after the US government decided to launch new economic relief measures, resulting in investors’ confidence on volatile asset investment.

He also said that investors began buying energy and power plant shares because their prices had dropped drastically. However, he believes SET has limited room to rise and that it will move sideways down between 1,245 and 1,275 due to lack of positive sentiment.

Therdsak Thaveeteeratham, Asia Plus Securities vice president of research, said SET rebounded technically because the political situation last week was not severe, while the index gained positive sentiment from the rise in Dow Jones Futures and strengthening the dollar, causing the cash to flow into volatile assets.

Like Koraphat, he too said the index has limited room to rise due to the Covid-19 outbreak and the domestic political situation, as student-led protesters are set to hold a rally in October. The index’s support line will stand at 1,250 and resistance line between 1,275 and 1,280.

Wikij Tirawannarat, director of individual customer research, expects the SET to rise by 10 per cent to 1,350 in line with foreign stock markets as it gained positive sentiment from hopes over US economic stimulus measures.

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