The SET Index plummeted last week, due mainly to declines in the Dow Jones Industrial Average, drop in crude prices, global uncertainties over the trade war and panic selling in Thai property stocks.
The situation may improve this week, supported by the following factors:
At the present level, the SET Index’s price to earnings ratio (PER) is 15 times, supported by the estimated earning results of listed companies at Bt1.07 trillion while total earnings for the first three quarters stood at more than Bt800 billion. At a PER of 15 times, the bourse’s base is at its strongest, and could attract longterm investors
The trade war could see a positive development, a part of which is the preparation process for USChina negotiations in late November;
The timeframe for the Thai election is now clearer and will be more certain after December 11 when the bill on the election of MPs comes into effect.
This week, the SET Index is expected to move upward with volatility, with major resistance level at 1,680 points and support level at 1,625 points.
Investment strategy: It’s good time to gradually accumulate sound-fundamental stocks with high dividend yield. Stock picks: LH, EASTW, SAT, TTW. Shortterm trading carries risks. – Therdsak Thaveeteeratham, Executive Vice President/ Research, Asia Plus Securities