Funds flows, US Fed move on bank capital expected to pressure SET
The Stock Exchange of Thailand (SET) Index dropped by 1.69 points, or 0.11 per cent, to 1,562.27 on Monday morning.
The SET Index is expected to fall to the support line between 1,555 and 1,560 after the US Federal Reserve declined to extend a post-pandemic exemption that lowered bank capital requirements, a Krungsri Securities analyst said.
"Besides, the index would be under pressure due to rising US bond yield and volatility in funds flows," he said.
He recommended that investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC and MAJOR, which benefit from positive news of Covid-19 vaccine in Thailand.
▪︎ HANA, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ ICHI, SAPPE, RBF, DOD, IP, TACC, GUNKUL, KISS and ZIGA, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,563.96 on Friday, down 4.86 points or 0.31 per cent. Total transactions amounted to Bt88.71 billion with an index high of 1,566.67 and a low of 1,554.96.
