Saturday, January 16, 2021

SET extends gains, but tight valuation casts shadow

Jan 13. 2021
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By The Nation

The Stock Exchange of Thailand (SET) Index rose by 5.64 points, or 0.37 per cent, to 1,545.49 in the morning session on Wednesday.

An analyst at Krungsri Securities predicted the day’s index would fluctuate between 1,530 and 1,550 points amid signs US President-elect Joe Biden would launch economic stimulus measures and a rising oil price after Saudi Arabia cut its oil production capacity by 1 million barrels per day.

However, the index would be under pressure due to its tight valuation at a price-to-earnings ratio of 30 times, the analyst said.

He recommended investors buy:

> PTTEP, PTTGC, Top and IVL, which benefit from the rising oil price and improved fourth-quarter performance.

> PSL, TTA and RCL, which would benefit from a rise in the freight rate.

> KBank, SCB, BBL, KTB and BLA, which benefit from a rising US bond yield.

The SET Index closed at 1,539.85 on Tuesday, up 3.36 points, or 0.22 per cent. The volume of total transactions was Bt90.16 billion, with an index high of 1,542.65 points and a low of 1,528.50.

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