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SET under pressure due to tight valuation


The Stock Exchange of Thailand (SET) Index fell by 5.02 points, or 0.33 per cent, to 1,511.92 in the morning session on Thursday.

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A Krungsri Securities analyst expected the SET to fluctuate between 1,525 and 1,530 points despite the US Federal Reserve’s promise to maintain the interest rate in a bid to stimulate the economy and employment.

The analyst said the index gained positive sentiment from the rising oil price and the first day of PTT Oil and Retail Business share trading.

“However, the SET would be under pressure due to its tight valuation,” he predicted, adding that the index’s price-to-earnings ratio was 30 times.

He recommended investors buy:

▪︎ PTTGC, TOP, IVL, EPG, VNT, CBG, ROJNA, TVO, STGT, HTC, CPF, RCL, PSL, SYNXE, COM7, XO, WICE, JMT, JMART, SINGER, MTC, SAWAD, KCE, AH and SAT, whose fourth-quarter turnover is expected to improve.

▪︎ CBG, ICHI, OSP, SAPPE, RBF, DOD and PTG, which benefit from positive news on hemp production and its general use.

The SET Index closed at 1,516.94 on Wednesday, down 1.33 points, or 0.09 per cent. Total transactions amounted to Bt74.89 billion, with an index high of 1,527.88 points and a low of 1,513.13.

Published : February 11, 2021

By : The Nation