Rising US bond yield likely to pressure Thai stock market
The Stock Exchange of Thailand (SET) Index rose by 17.19 points, or 1.11 per cent, to 1,561.30 in the morning session on Monday.
A Krungsri Securities analyst expected the day's index to rise to between 1,555 and 1,560 points on the US Senate's approval of a US$1.9-trillion economic relief plan, and rising oil price in line with economic recovery.
However, he warned investors to beware of mass sell-offs of Thai shares after the US bond yield rose over 1.5 per cent.
He recommended investors to buy:
▪︎ PTTEP, PTTGC, TOP and IVL, which benefit from the rising oil price.
▪︎ AOT, MINT, CENTEL, CPN, CRC and MAJOR, which benefit from positive news of a Covid-19 vaccine in Thailand.
▪︎ HANA, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ CBG, ICHI, SAPPE, RBF, DOD, PTG and TACC, which benefit from positive news on hemp production and its general use.
The SET Index on Friday closed at 1,544.11, up 10 points or 0.65 per cent. Total transactions amounted to Bt104.80 billion with an index high of 1,553.92 and a low of 1,529.83.
