Rising inflation, overbought stocks could rein in SET
The Stock Exchange of Thailand (SET) Index dropped by 0.07 points, or 0.36 per cent, to 1,616.36 at 10am on Friday. The volume of total transactions amounted to THB9.52 billion with an index high of 1,616.91 and a low of 1,613.13.
Krungsri Securities forecast that the SET Index would fluctuate between 1,605 and 1,625 points despite hopes of an economic recovery as mass Covid-19 vaccinations gather strength worldwide, and the price of oil continues to rise.
The index would be under pressure due to uncertainty over rising inflation and signs of overbought stocks, Krungsri Securities said.
It recommended that investors buy:
▪︎ PTT, PTTEP, PTTGC, TOP, IVL and BANPU, which benefit from the global economic recovery.
▪︎ BCH, CHG, BDMS, MINT, CENTEL, AOT, CPALL, HMPRO, CPN and CRC, which will benefit from the country's reopening.
▪︎ KCE, IRPC, STA and STGT, expected to be listed on the SET50 Index in mid-June.
▪︎ AAV, BLA, ICHI, PSL, PTL, SINGER, STARK, STGT and SYNEX, expected to be listed on the SET100 Index in mid-June.
The SET Index closed at 1,617.55 on Wednesday, down 1.04 points or 0.06 per cent. Transactions totalled THB101.45 billion with an index high of 1,627.67 and a low of 1,612.94.
The market was closed on Thursday to mark HM the Queen’s birthday.
