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SET Index may hit 1550-1600 during H2: SCBS

Jul 14. 2016
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By The Nation

The Stock Exchange of Thailand Index may continue its rally to hover around 1,550-1,600 points during the second half of this year, driven by a robust recovery of the domestic economy, said SCB Securities (SCBS).
            SCBS Senior Vice President of the Investment Strategy Department of the Research Group, Isara Ordeedolchest, said that higher-than-expected gross domestic product (GDP) growth in the first quarter of 2016 was a good signal of the upward direction for the rest of the year. Driving the economy further would be tobust tourism revenue, increased state investment, and accelerated private consumption upon the recovery of farm incomes.
Until July 13, the SET Index has risen 14.72 per cent this year. At 2.24pm today, the Index stood at B1,482.49 points. 
Despite the bullish view, Isara noted that the market would remain volatile, moving sideways from the first half of this year due to external risk factors, particularly eurozone uncertainties and the wavering recovery of the global financial market and economy.
            “The United Kingdom's decision to leave the European Union (Brexit) signals long-term pressure on worldwide trade because global trade may face more obstacles in the form of nationalism, conservatism, and trade barriers. It may also pave the way for other EU members to ponder referendums similar to that of UK, which is considered a risk factor for investors in the near future," he said.
The house advised stock investors to place focus on "domestic-play" stocks which could gain from domestic economic recovery.

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