SET could rise to 1,680 points in fourth quarter: expert
Viwat Techapoonphol, Deputy Managing Director and Head of Technical Analysis at TISCO Securities, said on Monday (October 7) that the Stock Exchange of Thailand (SET) will gradually improve n the fourth quarter and could reach 1,680 points by the end of the year.
“There are many positive factors in the fourth quarter, such as the improved liquidity after US Federal Reserve (FED) reduced its balance sheet back in August, possibility of another interest rate cut, and European Central Bank (ECB) starting to ease quantitative measures in November,” he said.
Viwat also predicted that in the fourth quarter the capital from retirement mutual funds (RMFs) and long-term equity funds (LTFs) will enter the market at around Bt3-4 billion. “This figure is still smaller than that for the same period last year of Bt5.3 billion), because investors are worried about long term economic growth and this might affect the yield to maturity of the funds,” said Viwat. “This worry is likely to prompt investors to make lower investments in LTFs and RMFs, and seek other options to help reduce their tax burden.”
The expert from TISCO recommended the following groups of shares to hold until the end of the year: 1) Shares with good foundation in the past few years, including BBL, KBANK, SCB and SPALI, 2) Shares related to economic stimulus measures, such as AOT, CPALL, BJC, AMATA, WHA and ROJNA, and 3) shares with excellent yield per quarter, such as BEM, ERW, SEAFCO, TRUE and TU.
As for gold investment in Thailand, Viwat recommended buying when the price goes down to Bt21,400 per baht. “Next year gold price should rise to Bt23,200-24,000 per baht, due to the Baht starting to depreciate and rising global gold price.”