Pending rise in US interest rate pressures SET Index
The Stock Exchange of Thailand (SET) Index is expected to drop between 1,675 and 1,680 points on Friday after the US Federal Reserve signalled it would raise the interest rate to 0.5 per cent in May to curb inflation, Krungsri Securities said.
It added that this announcement has pushed the US 10-year bond yield to surge to nearly 3 per cent, resulting in negative sentiment in the index.
"However, mass buy-ups of energy shares in line with rising oil and coal prices, as well as stocks that gained specific positive sentiment, will help boost the index," Krungsri Securities said.
It recommends the purchase of the following as an investment strategy:
• PTTEP, TOP, IVL, SPRC, BCP and BANPU will benefit from rising prices of oil, coal and gross refining margin.
• PSL and TTA will benefit from the rising freight rate.
• BDMS, BH, INTUCH, ADVANC, BTS and BEM can tolerate market volatility.
The SET Index closed at 1,690.55 on Thursday, up 10.20 points or 0.61 per cent, thanks to a rise in foreign stock markets and speculation in small-cap shares of companies whose first-quarter net profit is expected to rise, such as agriculture, food and finance, Krungsri Securities added.
Transactions totalled 71.08 billion baht with an index high of 1,693.14 and a low of 1,682.65.
