SET rises on positive sentiment but tight valuation raises volatility risk
The Stock Exchange of Thailand (SET) Index rose by 3.40 points, or 0.23 per cent, to 1,487.29 in the morning session on Friday.
An analyst at Krungsri Securities expected the day's index to fluctuate between 1,475 and 1,495 points amid hopes from the US$900 billion economic stimulus package and foreign funds inflows in line with the baht's appreciation.
"However, investors should beware of volatility due to the FTSE rebalance and the SET's tight valuation," he said.
He recommended that investors buy:
▪︎ PTTEP, PTTGC, TOP, IVL and SPRC that benefit from rising oil price.
▪︎ BH, SAWAD and TU, whose investment weight on the FTSE will increase today.
▪︎ BAM, DELTA and COM7, which will be listed on the SET50 Index.
▪︎ JMART and MBK, which will be listed on the SET100 Index.
The SET Index closed at 1,483.89 on Thursday, up 1.80 points or 0.12 per cent. The volume of total transactions was Bt112.75 billion with an index high of 1,495.37 and a low of 1,483.32.
