Foreign fund outflows, anti-govt protest expected to constrain SET
The Stock Exchange of Thailand (SET) Index fell by 2.09 points or 0.13 per cent to 1,549.78 on Thursday morning.
Krungsri Securities predicted that the day’s index would fluctuate between 1,540 and 1,560 points after the US Federal Reserve signalled it would reduce its quantitative easing programme this year as the economy is recovering.
It also predicted that the outflow of foreign funds and ongoing anti-government protests in Thailand would pressure the index.
“However, hopes that the lockdown would be eased as domestic Covid-19 cases stabilise would help boost the index,” Krungsri Securities said.
It recommended selective buying of the following companies’ shares as an investment strategy:
▪︎ Hana, KCE, TU, CPF, GFPT, Asian, EPG and NER, which benefit from a weakening baht.
▪︎ PSL, TTA and RCL, which would benefit from a rise in the freight rate.
▪︎ AOT, CPN, CRC, HMPro, AAV, BA, Mint, Centel, Amata and WHA, which would benefit from the country reopening.
The SET Index closed at 1,551.87 on Wednesday, up 7.65 points or 0.50 per cent. Transactions totalled THB81.90 billion with an index high of 1,557.08 and a low of 1,545.33.
