By The Nation
Tisco Financial Group stock analyst Viwat Techapoonpol predicted that in the first quarter of this year the SET index would rebound to 1,565-1,555 points, and then increase sideways to 1,620 points until March, thanks to the overall global situation, which tends to be better.
“The index was at its lowest in three years at 1,545 points and may fall to 1,500 points due to the barrier at 1,590 and 1,605 with an occurrence of 10 per cent.” he said.
Viwat expects the Super Savings Fund (SSF) effect will stimulate sales by 20 per cent, or Bt40 billion, while the Long-Term Equity Fund (LTF) can see sales of Bt200 billion from a total of more than Bt300 billion. Therefore, selling Thai stocks will limit the rise of the index to not more than 1,680 points.
“The tension between the US and Iran will be limited but prolonged, while the Organisation of Petroleum Exporting Countries has cut oil production by 500,000 barrels per day from January 1 to March 31, causing the oil price in the first quarter to rise to US$58-65 [Bt1,752-Bt1,963] per barrel,” Viwat said.
He expects global stocks to increase sideways slightly in the first quarter, especially stocks in the US and Europe, due to the most expensive price per earning ratio in eight years and an expected major improvement in the second quarter.
“We expect foreign investors to buy Thai stocks back after a net sell of Bt650 billion in the past seven years,” Viwat said.
He suggested investors should buy shares when the index hits 1,620 points, and sell when the index goes to 1,545 points. If they want to make a profit, investors should buy when the index touches 1,575-1,570 points and sell when it rises to 1,585-1,590.
“The recommended stocks in January are AP, Intuch, IRPC, KKP, Susco, TVO, and VNT, while the outstanding stocks are BBL, KTB, KKP, EGCO, TTW, GFPT, and TPIPL,” he added.