SET may feel the heat of fund-flow volatility, mass share sell-offs

It said the index gained positive sentiment from rising oil prices after Opec+ agreed to raise output by 400,000 barrels per day, and mass buy-ups of company shares that were expected to grow based on business turnover last year.

“However, fund-flow volatility amid uncertainty over the US Federal Reserve’s signal that it would raise the interest rate to tackle inflation, and mass share sell-offs in response to signs of overbought stocks would pressure the index,” Krungsri Securities said.

It advised investors to follow the European Central Bank and Bank of England meetings to see whether they will raise their respective interest rates to tackle rising inflation.

Krungsri Securities also recommended purchase of the following companies’ shares as an investment strategy:

• BBL, KBank, KTB and BLA, which benefit from news of a US interest rate hike.

• PTTEP, Top, PTTGC, IVL and SPRC, which will gain from the rising price of oil and the gross refining margin.

• AOT, Mint, Centel, ERW and AAV, which will benefit from the resumption of the Test & Go scheme and the fourth phase of the “Rao Tiew Duay Kan” (We Travel Together) travel subsidy.

The SET Index closed at 1,667.75 on Wednesday, up 6.00 points or 0.36 per cent. Transactions totalled 61.32 billion baht with an index high of 1,669.50 and a low of 1,658.58.