SET gains as Fed signals it will maintain rate
The Stock Exchange of Thailand (SET) Index rose by 14.56 points or 0.93 per cent to 1,581.32 in the morning session on Thursday.
A Krungsri Securities analyst expected the index to hit the resistance line between 1,575 and 1,580 points in response to US Federal Reserve signals that it would maintain the interest rate at a low 0.25 per cent and continue using quantitative easing.
The Fed also signalled that it would maintain the rate until it reached its goal to maximise employment and see price stability, expecting the US gross domestic product to rise this year.
“However, investors should beware of mass sell-offs of Thai shares in response to the FTSE’s move to rebalance Thai shares from 2.3 per cent to 2.25 per cent. The rebalance will be effective on Friday [March 19],” he said.
He recommended investors buy:
▪︎ AOT, Mint, Centel, AAV, BA, CPN, CRC and Major, which benefit from positive news of a Covid-19 vaccine in Thailand.
▪︎ Hana, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ CBG, Ichi, Sappe, RBF, DOD, IP, TACC, Gunkul and Kiss, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,566.76 on Wednesday, up 2.73 points or 0.17 per cent. The volume of total transactions was Bt92.17 billion, with an index high of 1,571.53 points and a low of 1,559.22.
