KGI Expects SET to Extend Loss without Positive Catalysts after Pricing-in Vaccine Factor

KGI Securities stated that SET Index is poised to extend moderate loss due to a lack of positive catalysts in the financial markets as the Biden’s win and coronavirus vaccine sentiment are already priced in.

 

On Friday, the SET Index is poised to extend moderate loss from the previous session. There are no fresh positive catalysts in the financial markets, and trades largely priced in recent big headlines on Biden presidency and the high efficacy ratio of COVID-19 vaccine from Pfizer–BioNTech.

Global markets also tilted more to risk-off mode overnight; US stocks and crude oil markets pulled back following a report that global COVID-19 infections reached another new record at 630K, led by the US which saw 150K daily new cases. The worsening COVID-19 situation could raise traders’ concerns about a possible US lockdown plan, recently proposed by Joe Biden’s advisors.

On the domestic side, traders are also monitoring Thai 3Q20 GDP which is due next Monday. KGI’s economist has an above-consensus view that the quarterly GDP would drop only 4.9% YoY compared to a 12.0% YoY contraction in 2Q20.

Lastly, it’s also worth monitoring the Thai political situation next week. On November 17-18, the Thai parliament is set to meet and debate five proposals to amend the 2017 constitution.