SET expected to advance today on Fed QE, rate decisions
The Stock Exchange of Thailand (SET) Index rose by 10.59 points or 0.65 per cent to 1,630.18 on Thursday morning, witnessing a high of 1,637.65 and a low of 1,628.81 in opening trade.
Krungsri Securities expected the day’s index to rise to between 1,625 and 1,630 points as neighbouring stock markets moved up in response to the US Federal Reserve’s move to taper its quantitative easing programme soon and raise the interest rate next year.
It added that the index also gained positive sentiment from Siam Commercial Bank’s move to restructure its business and establish SCB X Pcl in order to make a foray into the financial technology business.
“However, investors should beware of foreign fund outflows in response to the weakening baht,” Krungsri Securities said.
It recommended purchasing the following companies’ shares as an investment strategy:
▪︎ SCB, Advanc and True, which gained specific positive sentiment.
▪︎ PTT, PTTEP, Top, PTTGC, SPRC and Banpu, which benefit from rising oil and coal prices.
▪︎ Hana, KCE, TU, CPF, GFPT, Asian, EPG, NER, Sun and APure, which benefit from a weakening baht.
Related stories:
- SCB Group to set up SCBX as "Mothership" to increase flexibility and competitiveness as it aims to become a regional financial technology group
- Fed signals easing of markets supports could start in November, despite ongoing threat of delta variant
- SET Index up despite rising outflow risk
The SET Index closed at 1,619.59 on Wednesday, up 4.73 points or 0.29 per cent. Transactions totalled THB79.02 billion with an index high of 1,623.86 and a low of 1,611.76.
