MSCI is expected to raise its weighting in the Stock Exchange of Thailand, while a US interest-rate rise is not expected this month because of concerns over the result of the upcoming US presidential election, said Wilasinee Boonmasungsong, an executive at Globlex Securities.
These are both positive factors for the SET, he added.
The FOMC meeting was scheduled to conclude yesterday and the US presidential election will take place on November 8.
Apichai Raomanachai, deputy managing director for research at Apple Wealth Securities, said the FOMC meeting and US presidential election could affect foreign capital movement in Thailand, Indonesia and the Philippines.
He forecast that the SET Index would swing in a range of 1,435-1,540 points on a buying spree by local institutional investors this month and next, and speculation over third-quarter earnings performance.
Globlex Securities expects the SET Index to rise with volatility in a range of 1,480-1,520 points.
The index closed yesterday at 1,498.65, down 5.87 points from Tuesday on trading value of Bt49.33 billion.
Foreign investors had net sales of Bt846.84 million.
“In November, the decision on the US rate’s movement should be monitored. One rate hike is expected, at the December meeting [of the FOMC]. Other factors that need monitoring include the result of the US presidential election, and the Opec meeting on November 30 on whether to reach an agreement to reduce oil production,” Apichai said.
He expects no monetary-policy changes from the Fed, the Bank of Japan or the European Central Bank this month.
Next year, the SET Index is expected to move in a range of 1,400-1,750 points, while listed companies’ estimated earnings growth in 2017 is projected at 10 per cent on average, said Prapas Tonpibulsak, chief investment officer at Talis Asset Management.
Small and medium-sized stocks are forecast to see higher earnings growth, he said.
Talis Asset Management yesterday launched the Talis Long Term Equity Fund (TLLTFEQ), focusing on stocks with sound fundamentals.
“This LTF is another alternative for investment amid the Thai stock market’s volatility,” said Chatrapee Tantixalerm, chief executive officer of the company.
The first purchase is set at a minimum of Bt1,000.