SET expected to fluctuate amid Fed interest rate hike concerns
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Tuesday (January 11) would fluctuate between 1,650-1,670 points due to lack of positive sentiment.
It said the index is currently under pressure due to uncertainty over the US Federal Reserve (Fed) signalling it would raise the interest rate to tackle inflation sooner than expected.
FedWatch Tool predicted that there is 90 per cent possibility that Fed will raise the interest rate by 0.25 per cent in March, it explained.
"However, the index would rise from the decline in Thailand Covid-19 infections, so we advise investors to focus on selective buying of shares," Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
- BBL, TTB, KBANK and BLA, which benefit from news of interest rate hike.
- RCL, LEO, III, WICE, SONIC and JWD, which benefit from rising freight rate.
- HMPRO, CPN, CRC, SYNEX, COM7 and KTC, which benefit from the government's Shop Dee Mee Kuen" (Shop and Payback) scheme.
The SET Index closed at 1,657.06 on Monday, down 0.03 per cent, with transactions totalled 79.54 billion baht.
