SET up, but faces pressure from short term share sell-offs, overbought stocks

Krungsri Securities expected the day’s index to rise to between 1,643 and 1,650 points before falling back.

It said the index gained positive sentiment from the US Federal Reserve signalling it would not rush to raise the interest rate, and the first day of lockdown easing in Thailand as domestic infections saw a reported decline.

“However, the index would be under pressure due to short term mass sell-offs of sharers and signs of overbought stocks,” Krungsri Securities said.

It advised investors to follow a key Opec+ meeting on increasing oil production capacity by 400,000 barrels per day.

It also recommended buying of the following companies’ shares as an investment strategy:

▪︎ AOT, KBank, BBL, CPN, CRC, HMPro, AAV, BA, Mint, Amata and WHA, which benefit from the country reopening.

▪︎ CKP, Banpu, GPSC, Gulf, BCPG, BCH and CHG, whose third-quarter profit is expected to rise.

The SET Index closed at 1,638.75 on Tuesday, up 4.98 points or 0.30 per cent. Transactions totalled THB117.90 billion with an index high of 1,643.76 and a low of 1,628.12 as the SET rose for the eighth successive day.