Decline in foreign funds flow and tight valuation pressure SET
The Stock Exchange of Thailand (SET) Index fell by 4.33 points, or 0.29 per cent, to 1,506.70 in the morning session on Friday.
A Krungsri Securities analyst predicted the SET to fall to between 1,500 and 1,505 points due to the rise in US unemployment claims, uncertainty over the inflation rate which is likely to increase, and falling oil price.
He added that the index would be under pressure due to its tight valuation and the decline in foreign funds flow.
He recommended that investors buy:
▪︎ IVL, SPRC, ESSO, VNT, CBG, ROJNA, TVO, HTC, CPF, RCL, PSL, SYNEX, COM7, XO, WICE, JMT, JMART, SINGER, SAWAD, AH, and CHG, whose fourth-quarter results are expected to improve.
▪︎ PSL, TTA and RCL, which would benefit from a rise in the freight rate.
The SET Index closed at 1,511.03 on Thursday, down 3.88 points or 0.26 per cent. Total transactions amounted to Bt97 billion due to lack of positive sentiment, rising Covid-19 cases in Pathum Thani province and uncertainty over the outflow of foreign funds after the dollar strengthened.