Analyst Expects SET to Move Sideway-Down in Concerns of Slow Economic Recovery

Tisco Securities expected the Thai stock market to move in sideway-down trends, in line with regional markets that moved in a negative territory around 0.3-0.6% due to concerns of the global economic recovery after the U.S. retail sales was lower than expected. China began to lockdown its cities after a resurgence of Covid-19. Meanwhile, Norway reported 20 deaths after receiving vaccines.

The analyst expected Foreign Investors and Local Institutions to continue adjusting their portfolio for the new big IPO, estimating a support level at 1,515-1,500 points and a resistance level at 1,525-1,530 points.

As of 9:30 local time in Thailand on Monday, Nikkei dropped 0.76%, SSEC rose 0.16%, HSI increased 0.27%, ASX200 fell 0.84% and Kospi plunged 0.71%.

Last Friday, SET Index closed at 1,519.13 points, decreased 16.85 points or 1.10% with a trading value of 101 billion baht. The analyst stated that the selloff in DELTA impacted SET Index around 7.48 points and pointed out that the trends in DELTA started to die out. Meanwhile, the analyst expected institution investors to adjust their portfolio to subscribe PTT Oil and Retail Public Company Limited (OR)’s IPO, though institution investors should already have a good amount of budget for investment in reserve and the proportion of OR that provided to institution investors was only 2-3% out of a total of 25% of its newly issued ordinary shares.

The analyst advised investors to keep an eye on the Thai cabinet meeting next week regarding the stimulus package and the announcement of 4Q20 earnings of the banking sector.