SET Moves in a Wild Session as Investors Monitor the Upcoming FOMC Meeting

SET Index rose 0.64 points or 0.04% to 1,633.70 points as of 10:15 local time in Thailand on June 15, 2021, with a trading value of 10.2 billion baht. The movement in today’s trading session was in both positive territory.

 

In the meantime, stocks in Asia market traded in volatile sessions as well. Nikkei rose 0.73%, SSEC dropped 0.93%, HSI fell 1.27%, ASX 200 gained 0.89% and Kospi increased 0.03%.

 

Asia Wealth Securities (AWS) expected the SET today to move in a range of 1,620-1,640 points. SET has a chance to rest before the FOMC meeting. Yesterday, the SET +/- in a range of 13 points and closed down 3.5 points (-0.21%), including the risk of the COVID-19 situation and the implementation of vaccinations in the country put pressure on the overall investment. To reduce short-term volatility, AWS recommended avoiding large stocks and investing in small-medium stocks and the share price remains Laggard according to the Core Investment.

 

AWS stated that money markets were flat before the FOMC meeting. The U.S. 10-year Treasury bond yield moved in a narrow range of 1.5%, including the Dollar Index, which remained stable at 90.5 points before the FOMC meeting (15-16 June), especially economic forecast figure adjustment, interest rate, inflation rate and the unemployment rate, including the statements of Fed Chairman Jerome Powell.

AWS believed the Fed will not change monetary policy despite the inflation report in May continuing to increase and higher than Market Consensus. AWS expected the Fed to maintain short-term interest rates at 0.00-0.25% and will continue to buy quantitative easing (QE) bonds worth USD120bn a month. This will return to be a positive factor for the overall investment.

 

Core Investment

1) Laggard Play (Trading within 1-2 months) – ADVANC, CPF, KBANK, BBL, MTC, EGCO, SPALI, LH, WHA, BDMS, BEM and BJC

2) Domestic Play / Re-Opening (Trading within 1-3 months) – BDMS, BEM, BAM, MINT, ERW, AOT, AAV, CPALL, CPN, CRC, BJC, AU and M

3) Stocks expected good performance in 2Q21 (Trading 1-3 months) – BCH, CHG, HMPRO, GPSC, BPP, PTTGC, IVL, PTTEP, PTG, SONIC, KWM, ORI, SPALI, KKP, KBANK and MTC

4) Dividend Play (Middle-term trading 6-12 months) – LH, QH, ORI, SPALI, ADVANC, KKP, TISCO, STA, STGT, TMT, TVO and STI

5) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB