Seven-day rising streak to continue for SET as lockdown eased

The SET Index closed at 1,633.77 on Monday, up 22.57 points or 1.40 per cent. Transactions totalled THB117.38 billion with an index high of 1,634.92 and a low of 1,621.42 as the SET rose for a seventh successive day.

Krungsri Securities expected the index on Tuesday to rise to between 1,640 and 1,645 before alternating to weaken, as there is support for the market conditions after the US Federal Reserve signalled it would not rush to raise the interest rate, despite the reduction of the quantitative easing measure in 2021.

Krungsri Securities added that the index also gained positive sentiment from the government's move to ease lockdown measures as domestic infections are declining. 

“However, there is an expectation of late-sell pressure from MSCI Rebalance reducing the weight of the emerging markets group by 0.03 per cent (around $112 million), which will pressure the index to weaken,” Krungsri Securities said.

It recommended selective buying as an investment strategy:

• AOT, KBANK, BBL, CPN, CRC, HMPRO, AAV, BA, MINT, AMATA and WHA, which would benefit from the country's reopening.
• PSL, TTA and RCL, which would benefit from a rise in the freight rate.
• CKP, BANPU, GPSC, BCH and CHG, which would benefit from the growth in the third quarter.