Mass share sell-off, Fed rate signal likely to pressure SET Index
The Stock Exchange of Thailand (SET) Index is expected to rise to the resistance level between 1,668 and 1,675 points on Wednesday in line with rebounding regional stock indices, Krungsri Securities said.
It said the index gained from rising oil prices and mass buy-ups of company shares that were expected to grow based on business turnover last year.
“However, the index would be under pressure due to uncertainty over the US Federal Reserve’s signal that it would raise the interest rate to tackle inflation, and a mass share sell-off in response to signs of overbought stocks,” Krungsri Securities said.
It advised investors to follow the Opec+ meeting on Wednesday as the bloc was expected to raise oil production by 400,000 barrels per day.
It recommended the purchase of the following company’s shares as an investment strategy:
• BBL, KBank, KTB and BLA, which will benefit from news of a US interest rate hike.
• PTTEP, Top, PTTGC, IVL and SPRC, which would gain from the rising price of oil and the gross refining margin.
• AOT, Mint, Centel, ERW and AAV, which would benefit from the relaunch of the Test & Go scheme and the fourth phase of the “Rao Tiew Duay Kan” (We Travel Together) travel subsidy.
The SET Index closed at 1,661.75 on Tuesday, up 12.94 points or 0.78 per cent. Transactions totalled 59.43 billion baht with an index high of 1,663.76 and a low of 1,658.26.
