SET to swing high on back of rising oil prices triggered by Houthi militia attack
As markets opened on Monday morning, Krungsri Securities predicted that the Stock Exchange of Thailand (SET) Index would fluctuate between 1,630 and 1,650 points during the day.
It said the index had gained positive sentiment from the rise in oil prices in response to the Houthi militia attack on the United Arab Emirates, as well as a mass buy-up of company shares whose business turnover is expected to grow.
However, it reckons the index will be under pressure from fund flow volatility amid uncertainty over the US Federal Reserve's signal that it will raise interest rates in March to tackle inflation, Krungsri Securities said.
It recommends the purchase of the following as an investment strategy:
• BBL, KBANK, KTB and BLA will benefit from news of the US interest rate hike.
• PTTEP, TOP, PTTGC, IVL and SPRC will benefit from the rising price of oil and gross refining margin.
• AOT, MINT, CENTEL, ERW and AAV will benefit from the government’s move to relaunch the Test & Go scheme and the fourth phase of the “Rao Tiew Duay Kan” (We Travel Together) travel subsidy.
The SET Index closed at 1,639.51 on Friday, up 5.34 points or 0.33 per cent. Transactions totalled 77 billion baht with an index high of 1,646.48 and a low of 1,636.70.
