Fed interest rate hike signal, surging Covid-19 infections expected to pressure SET
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Thursday (January 6) would move between 1,665-1,670 points due to uncertainty over the US Federal Reserve signalling it would raise interest rate sooner than expected to deal with rising inflation.
It added that the surge in Thailand daily Covid-19 infections would affect investors' confidence.
"Meanwhile, mass sell-offs of shares in response to technical signs at the resistance level of 1,680 points would pressure the index," Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
- BCH, CHG, IMH, SMD and TM, which benefit from rising Covid-19 cases.
- RCL, LEO, III, WICE, SONIC and JWD, which benefit from rising freight rate.
- EA, GPSC, AMATA, WHA, AH and SAT, which benefit from the government's support on electric vehicles.
- PTTEP, TOP, PTTGC, IVL and SPRC, which benefit from rising oil price and gross refining margin.
The SET Index closed at 1,676.79 on Wednesday, up 0.39 per cent. Transactions totalled 93.12 billion baht.
