Ebbing global tensions will boost SET: Tisco
Tisco Financial Group on Friday (January 10) predicted a rise in the Stock Exchange of Thailand (SET) Index due to progress in resolving the trade rift between the US and China, as well as an easing of tensions between the US and Iran.
China’s Vice Premier, Lui He, is scheduled to visit the US from January 13 to 15 to sign a memorandum of understanding on the first phase of the trade dispute between the two countries.
Meanwhile, the WTI crude oil price dropped 5 cents and closed at US$59.56 per barrel, after the conflict between the US and Iran was contained.
Tisco predicted the SET Index could continue rising, as the chances of a global war because of the US-Iran conflict have ebbed.
Recently, the US House of Representatives approved restrictions on Trump’s power to use military power to attack Iran.
In Thailand, the SET Index’s movement hinged on the draft 2020 budget act deliberated by Parliament.
The budget was expected to be approved by the House of Representatives on Friday (January 10), before being sent to the Senate for consideration on January 20. The act needs to be enforced by the end of this month.
Tisco has forecast that the act will increase the country’s confidence and predicted the SET index today to close at 1,570+/- of support, and 1,585 and 1,595 of resistance.
Tisco suggested a “wait and see” approach as the main strategy for general investors, since the market has seen high fluctuations.
However, those ready to take a risk, should use the SET Index which closed near 1,580 on Thursday, as criteria to trade in the short term, Tisco said.
The top stock performers on Friday were likely to be BBL, KTB, KKP, GPSC and GULF.