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SET poised for gains as US removes China from currency manipulator list

Jan 14. 2020
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By The Nation

Tisco Research predicts that the Stock Exchange of Thailand (SET) Index will rise today (January 14) on the back of news that the US has removed China from its list of currency manipulators.

The SET Index in morning trade rose 1.53 points to 1,587.69 points, up 0.10 per cent, while the average daily trading value was Bt31.88 billion.

Senior Tisco Securities strategist Apichat Poobunjirdkul said that the SET Index on Monday (January 13) fluctuated between 1,579 and 1,588 points, with the average daily trading value of Bt64.9 billion.

“After the House of Representatives passed the draft budget bill, contractors entered the market to buy stocks, while speculation in power plant stocks led to foreign investors selling stocks worth Bt227 million for three consecutive days. The 3,315 S50 futures contracts were switched from long-term to short-term since last week,” he said

“Global stocks saw demand, especially S&P500 and Nasdaq, which closed at a new high after the US said it would remove China from the list of currency manipulators, adding more opportunities for the first phase of the trade agreement between the two countries on January 15.”

West Texas Intermediate (WTI) crude oil closed at US$58.08 per barrel, down 1.6 per cent, continually decreasing from early last week after tensions in the Middle East spiked.

“We predict that the SET Index will tend to rise due to the trade agreement between the US and China, as well as the Thai House of Representatives passing the draft budget bill for fiscal year 2020,” he said.

“These factors will restore investor confidence. According to the annual budget for fiscal years 2007 and 2012, Thai stocks increased in positive territory on average by 5-8 per cent. We recommend following the Cabinet’s consideration of the fourth phase of the “Eat, Shop, Spend” scheme and the announcement of banks’ performance.

He suggested that investors should use the SET trading frame at 1,575-1,600 points to buy or sell stocks if they can handle the risks.

“For investment in the next 3-4 months, we recommend finding an appropriate opportunity when the stock price is weak or fluctuating,” he added.

Among the recommended outstanding stocks in January are: AP, INTUCH, IRPC, KKP, SUSCO, TVO, and VNT, while the outstanding stocks for this year are: CPALL, BJC, AEONTS, PLANB, SCB, AOT, PTTEP, PTT, TOP, SPRC, SPALI, and KKP.

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