FRIDAY, March 29, 2024
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SET Index expected to moving sideways amid uncertainty over global economy

SET Index expected to moving sideways amid uncertainty over global economy

Tisco Research has predicted that the Stock Exchange of Thailand (SET) Index on Monday (February 17) will move sideways downwards with support at 1,515-1,520 points and resistance at 1,535-1,542 due to uncertainty about the global economy.

The SET Index last Friday (February 14) fluctuated into positive until it fell sharply during the last 30 minutes after investors sold power plant and retail stocks. There are 8,156 short-term S50 Futures contracts for two consecutive days.
Senior Tisco Securities strategist Apichat Poobunjirdkul said that most of the global stocks last Friday fell slightly after the US revealed the country’s economic data that the manufacturing sector was worse than expected, retail sales were as expected, and consumer confidence was better than expected.
“Meanwhile, investors are still monitoring the situation of the novel coronavirus (Covid-19) outbreak after China decreased the number of deaths in Hubei province by more than 108 people due to mistakes in counting, raising doubts of the reliability of the death toll,” he said.
The West Texas Intermediate crude oil price continually increased by 1.2 per cent, resulting in oil prices closed in positive for the first week since the beginning of this year.
“We expect that the coronavirus [Covid-19] will impact the economy in the short term, while China’s central bank will help stimulate the economy,” Apichat said.
Japan said on Monday morning that its gross domestic product (GDP) deflated to 1.6 per cent quarter on quarter, which is more than the market expectation of 1 per cent quarter on quarter.
“We expect that Thailand’s fourth quarter GDP will inflate to 2.5 per cent although this year's GDP will be slashed to 2 per cent from the company's and market expectation of 2.6 and 2.9 per cent respectively due to the Covid-19 outbreak,” Apichat said.
“Meanwhile, listed companies’ earnings forecast is likely to decline from the beginning of this year which was reduced by about 3 per cent year-to-date.”
Apichat added that the US market was closed due to Presidents’ Day, while Chayo stock has a cash balance from February 17 to March 27.
He suggested that investors find an opportunity for trading in the short term since the SET Index is recovering, adding that investors should wait and see if the index falls below 1,515 points.
Outstanding picks for February are: AP, EASTW, ERW, KKP, RBF and TASCO.

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