SET buoyant but faces pressure over foreign fund flow decline, overbought stocks
The Stock Exchange of Thailand (SET) Index rose by 2.33 points or 0.14 per cent to 1,636.81 on Thursday morning, witnessing a high of 1,639.38 and a low of 1,633.79 in opening trade.
Krungsri Securities predicted the day’s index would fluctuate between 1,625 and 1,645 points due to a lack of fresh positive sentiment.
It said the index was upbeat from signals that the US Federal Reserve would not rush to raise the interest rate, and Thailand’s falling Covid-19 infection numbers.
“However, a decline in foreign fund flows and signs of overbought stocks would trigger mass sell-offs of shares, resulting in pressure on the index,” Krungsri Securities said.
It recommended purchases 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, CHG and BDMS, whose third-quarter profit is expected to rise.
The SET Index closed at 1,634.48 on Wednesday, down 4.27 points or 0.26 per cent. Transactions totalled THB117.67 billion with an index high of 1,646.07 and a low of 1,628.16 as the index broke an eight-day run of rises.