Mon, August 08, 2022


SET Index likely to dip as US Fed proceeds to curb inflation

The Stock Exchange of Thailand (SET) Index is expected to fall to between 1,685 and 1,690 points on Thursday due to the US Federal Reserve’s move to curb inflation, Krungsri Securities said.

“The Fed will shrink its balance sheet by US$95 billion [THB3.18 trillion] per month and raise the interest rate by 0.50 per cent up to twice,” it explained.

Krungsri Securities also said a drop in the crude oil price – after International Energy Agency members agreed to reduce their oil reserves by 120 million barrels to ease fuel prices – as well as the Russia-Ukraine war would pressure the index.

It recommends the purchase of the following as an investment strategy:

• GPSC, BGrim, SCGP, SCC and EPG, which would benefit from the falling oil price.

• AOT, AAV, BA, Mint, Centel, ERW, CPN, CRC, HMPro, CPAll, Makro, Amata, WHA, BH and BDMS, which would gain from countries reopening.

The SET Index closed at 1,701.18 on Tuesday, down 1.75 points or 0.10 per cent. Transactions totalled 68.44 billion baht with an index high of 1,708.89 and a low of 1,698.33.

The index was closed on Wednesday for Chakri Memorial Day.

Published : April 07, 2022