Daily Strategy: SCBS Expects Limited Upside for SET Index, Keeping Fed’s Meeting in Check
SCB Securities warned investors to be cautious of higher volume of assets tapering from the Fed, seeing limited upside for SET Index.
Major stock markets in Asia traded higher on Monday as investors are focusing on the upcoming central bank meetings this week, including the U.S. Fed, European Central Bank, Bank of England and Bank of Japan.
Thailand’s SET Index opened at 1,626.89 points, increased 8.66 points or 0.54%.
As of 10:10 local time in Thailand, Nikkei rose 0.91%, SSEC gained 0.85%, Hang Seng Index increased 1.13%, ASX 200 advanced 0.56% and IDX Composite edged 0.18% higher.
Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on December 13, 2021, stated that the Thai market has priced in the relaxation from Covid-19 omicron variant, expecting SET Index this week to move with limited upside at 1,625-1,635 points as investors are looking forward to central banks meeting this week, especially the U.S. Federal Reserve.
Mr. Suntarapichard warned that investors should trade carefully as the Fed could send a signal for a faster pace of tapering and an outlook for next year while believing that there could be a profit taking during this period and SET Index could plunge to 1,600 -1,560 points.
In addition, Mr. Suntarapichard recommended banking and reopening stocks (KBANK, BBL and AOT) for defensive strategy and leasing and contractor stocks (SAWAD, MTC, CK, and ITD) for speculation.