Rising bond yield puts downward pressure on SET
The Stock Exchange of Thailand (SET) Index dropped by 4.22 points, or 0.27 per cent, to 1,564.60 in the morning session on Friday.
A Krungsri Securities analyst predicted the SET would fall to the support line between 1,555 and 1,560 points due to rising bond yield amid uncertainty over inflation and falling oil price after many European countries reimposed lockdown measures.
The US bond yield had risen over 1.7 per cent, while oil price had fallen below US$60 per barrel on Thursday.
"Besides, mass sell-offs of Thai shares after the FTSE rebalanced Thai stocks from 2.3 per cent to 2.25 per cent would pressure the index," an analyst said.
He recommended investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC and MAJOR, which benefit from positive news of the Covid-19 vaccine in Thailand.
▪︎ HANA, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ CBG, ICHI, SAPPE, RBF, DOD, IP, TACC, GUNKUL and KISS, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,568.82 on Thursday, up 2.06 points or 0.13 per cent. Total transactions amounted to Bt81 billion with an index high of 1,583.30 and a low of 1,567.67.
