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“Weekly Featured” this week (December 14-18) to dive into important news In the weekly cycle on December 14, 2020
Starting with the summary of the Thai stock market last week (December 8-9), SET INDEX closed at 1,482.67 points, 2.27% more than the previous week. The first three stocks were the ones that grew the most, those of electronic parts, which rose 24.37%, followed by materials, industrial and machinery, which rose 5.58% and, finally, the steel sector increased by 2, 77%.
Although in the last week, the Thai stock market only opened for trading for 2 business days. But with a huge influx of money This was the driving force for the index to soar above 1,500 as expected, before encountering periodic profit-taking forces from some investors. To reduce risk before entering a long weekend As a result, the index was only slightly positive.
However, according to a survey of many analysts, the Thai stock index continued to give a positive weight this week. Reflected through the view of the possibility of an index bounce, there is a chance to test the key resistance at 1,500 points again and if it is passed, there is a chance to test the next level at 1,530 points, being the main driving force The purchasing power of foreign investors that continuously indicate the purchase of Big Cap shares In addition to the confidence of investors in the country.
Although increasing investor confidence is a factor that supports the investment climate at the moment. But since the strong rally in the Thai stock index from the beginning of November to the present. You begin to see warning signs of the possibility of a short break. Along with the introduction of key factors affecting investor psychology, such as the progress of COVID-19 vaccination results. For the first people Including the results of the meeting of the Monetary Policy Committee (FOMC) of the Federal Reserve in the middle of this week (December 15-16) if it shows a greater relaxation of monetary policy or not. After the fiscal policy of the United States government. Get ready to push through a big budget to stimulate the economy again in hopes of quickly restoring the economy to normal in the days of the last president of the United States, Joe Biden.
Mr. Mongkol Puangphetra, Deputy Managing Director for Investment Strategy, KTB Securities (Thailand), assesses the overall outlook for SET INDEX this week and sees an opportunity for recovery. But with the vulnerability of an excessive purchasing power It may be the main variable that increases the risk that the Thai stock market will move again in the range below 1,500 points.
“Even if the Thai stock index goes above 1,500 points, it may reach the next resistance of 1,530, but we believe that a sharp rise above 1,500 points would not take a quick time. And some periods may see a break below 1,500 once again, however this time we have to admit that the Thai stock market is driven by a lot of liquidity. Therefore, it would be difficult to guess a reason to stop it. Because when liquidity comes in, it will affect all variables anyway, ”Mongkol said.
For the strategy of investors who do not have shares in their portfolio, they should buy only 40% of the shares in which they want to invest. The rest are waiting to buy during the new round of correction, support is 1,470 points, and an interesting stock market topic is economic-based stocks such as commercial banks and petrochemical stocks, but with a high value of shares. Strategies should always be placed with a stop loss (Stop Loss).
For this week (December 14-18), Kasikornbank evaluated the movement frame of the Thai baht at 29.80-30.20 baht per dollar. Important factors to monitor include the Bank of Thailand stabilization signal (Thai baht). The results of the Federal Reserve’s monetary policy meeting (December 15-16) foreign investment flows In addition to political factors and the COVID-19 situation in private countries, the US economic figures will monitor the New York Federal Reserve Manufacturing Activities Survey, Philadelphia Fed Trade Outlook Survey in December. Retail sales data Industrial production AND the number of starting houses in November
The market is also awaiting the results of the meeting of the Bank of Japan (BOJ) and the Bank of England (BoE), the Brexit deal negotiations, the November economic data and indices from China. December Preliminary PMI From US, Eurozone and UK Too
