Analysts Expect SET Index to Move Sideways as Covid-19 Pressures the Thai Stock Market

CGS-CIMB Securities expected the Thai stock market to move in sideways trends with a low trading volume due the two-day closing this week for holiday, while being pressured by the lockdown measures and Covid-19 situation in Thailand.

However, the securities company expected the market to receive some positive sentiment as Thailand’s Centre for COVID-19 Situation Administration (CCSA) expected to allow restaurants in the department stores to reopen and bring back other stimulus packages to boost consumer demand.

In addition, CGS-CIMB Securities gave a support level for the SET Index at 1,540-1,532 points and a resistance level at 1,550-1,557 points.

 

Finansia Syrus Securities (FSS) expected SET Index to move in sideways trends as well in a range of 1,540-1,550 points as the market lacks new positive factors to drive the sentiment, while expecting a limited upside to the Thai market due to the Covid-19 outbreak that the daily cases remained high.

Moreover, the outbreak could impact the industrial sector, causing a temporary halt in production. FSS estimated that the lockdown measure will be extended for two more weeks.

As for the FOMC meeting, the Fed should maintain its view on inflation rate and tapering QE.

In addition, FSS advised investors to invest in stocks that have limited impact from Covid-19 and those that have strong 2Q-3Q21 earnings outlook, such as medical, transportation (sea freight), technology, electronics and auto parts exports.