SET rises, but high market volatility casts shadow
The Stock Exchange of Thailand (SET) Index rose by 4.32 points, or 0.35 per cent, to 1,241.36 in the morning session on Thursday.
An analyst at Krungsri Securities expects the index to rebound to 1,245 points before falling from hopes that US lawmakers will reach an agreement on further economic stimulus measures and also a rising oil price.
“US Treasury Secretary Steven Mnuchin and Speaker of the House of Representatives Nancy Pelosi have indicated that Republicans and Democrats will reach an agreement soon,” the analyst said.
“However, investors should beware of high market volatility after the expiration of SET’s ceiling-floor adjustment, uptick rules and a circuit breaker, as well as a mass sell-off of Thai shares by foreign investors,” he said.
He recommended investors buy shares of:
> Banpu and AGE that benefit from a rising coal price in response to China’s demand.
> TU, Asian, Com7, CHG, PTG and PlanB, whose third-quarter performance is expected to grow.
> Delta, Hana, KCE and SMT that benefit from the weakening baht.
The SET Index closed at 1,237.04 points on Wednesday, down 20.30 points, or 1.61 per cent. The volume of total transactions was Bt48.98 billion, with an index high of 1,260.06 points and a low of 1,236.53.
