SET Index predicted to dip on Tuesday ahead of Fed rate hike
The Stock Exchange of Thailand (SET) Index is expected to fall to between 1,670 and 1,675 points on Tuesday amid uncertainty over the US Federal Reserve's move to curb inflation, Krungsri Securities said.
Citing FedWatch, it said the Fed would raise the interest rate by 0.50 per cent during meetings in May and June.
"FedWatch also expects that the interest rate will rise to between 2.50 and 2.75 per cent this year," Krungsri Securities said.
It added that foreign fund flow volatility and mass sell-offs of stocks to cope with risks during the Songkran holiday would pressure the index.
It also advised investors to follow the US inflation report as consensus expection is that general and core inflation in March will rise to 8.3 per cent and 6.6 per cent, respectively.
It recommends the purchase of the following as an investment strategy:
• GPSC, BGRIM, SCGP, SCC and EPG would benefit from 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 1,678.46 on Monday, down 7.54 points or 0.45 per cent. Transactions totalled 62.75 billion baht with an index high of 1,685.95 and a low of 1,675.95.
