Thai stock market under pressure as Fed tightening squeezes foreign inflows
The Stock Exchange of Thailand (SET) Index is expected to fluctuate between 1,675 and 1,695 points on Monday amid uncertainty over the US Federal Reserve's tighter monetary policy to curb inflation, Krungsri Securities said.
It said the Fed's move to shrink its balance sheet and raise the interest rate had caused a drop in foreign fund flows.
"Meanwhile, the falling crude oil price and lack of progress in Russia-Ukraine peace talks would pressure the index," Krungsri Securities said.
It recommends the purchase of the following as an investment strategy:
• GPSC, BGRIM, SCGP, SCC and EPG would benefit from the falling oil price.
• AOT, AAV, BA, MINT, CENTEL, ERW, CPN, CRC, HMPRO, CPALL, MAKRO, AMATA and WHA would benefit from countries reopening.
• BDMS, BH, INTUCH, ADVANC, BTS and BEM which can tolerate market volatility.
The SET Index closed at 1,686.00 on Friday, up 3.59 points or 0.21 per cent. Transactions totalled 70.88 billion baht with an index high of 1,690.58 and a low of 1,678.07.
