Worries of QE tapering pressure SET Index
The Stock Exchange of Thailand (SET) Index fell by 5.74 points or 0.36 per cent to 1,599.94 on Friday morning, witnessing a high of 1,605.20 and a low of 1,599.80 in opening trade.
Krungsri Securities predicted the day's index would fall to between 1,600 and 1,590 points due to uncertainty over the US Federal Reserve signalling it would taper its quantitative easing and raise the interest rate sooner than expected, plus the conflict in US Congress debt ceiling and corporate income tax hike.
However, the rising oil price and mass buy-up of stocks enjoying specific positive sentiment would help boost the index, Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
▪︎ Banpu, Lanna, DCC, Cotto and Tasco, which gained its specific positive sentiment.
▪︎ PTT, PTTEP, TOP, PTTGC, SPRC and IVL, which benefit from rising oil price.
▪︎ Hana, KCE, TU, CPF, GFPT, Asian, NER, Sun and APure, which benefit from weakening baht.
Related stories:
- Baht strengthens shortly amid risk factors
- The price of gold peaked by THB250 in morning trade on Friday
- SET Index drops 0.7% under shadow of QE tapering
The SET Index closed at 1,605.68 on Thursday, down 11.30 points or 0.70 per cent. Transactions totalled 90.65 billion baht with an index high of 1,621.15 and a low of 1,601.79.
