Analyst Expects SET to Fluctuate, Recommending Investors to Accumulate upon Rebasing

Finansia Syrus Securities (FSS) stated that the SET Index rose to 1,510 points on the trading session on Thursday, last week, but faced profit-taking, erasing its gains to only 5.67 points at the closing, slightly below the resistance level of 1,500 points.

 

The security company expected SET Index to edge lower in today’s session (March 1st) to 1,475-1,480 points, following the negative movement in the global market on Friday after the U.S. bond yield rose to a record high in one year.

Even with a positive recovery in the regional market this morning, SET Index would face negative sentiment from the political unrest last night. Meanwhile, FSS expected the overall 4Q20 earnings will contract 1% QoQ and 32% YoY. As for the whole year in 2020, the overall earnings are expected to contract 35% YoY.

FSS expected the market to be volatile in the short-term due to concerns over inflation rate and higher interest rate in the future. The security company saw the rebasing in SET Index at 1,450-1,460 points as an opportunity to accumulate stocks.

 

As of 9:30 local time in Thailand, Nikkei rose 2.36%, SSEC increased 0.90%, HSI jumped 1.39%, ASX 200 advanced 1.45%, while Kospi plunged 2.80%.