Slowing foreign investment is anticipated this month as foreign interests wait to see what US trade and investment policy will be next year.
Mongkol Puangpetra, senior director at KTB Securities (Thailand), said higher oil prices and the Thai government’s stimulus measures were positive factors for the SET.
Apichai Raomanachai, deputy managing director for research at Apple Wealth Securities, forecast the SET Index to swing in a range of 1,4881,540 points this month, likely driven by more than Bt2 billion in purchases of LTFs and RMFs and energy stocks after the Opec’s decision for lower production. At this level, the forward pricetoearnings ratio is 14.014.5 times.
Opec slashed its daily crudeoil production by 1.2 million barrels to 32.5mmbd, which could boost the oil price to US$55 per barrel next year. “The energy group gains after the Opec decision,” Apichai said.
He noted that the US Federal Open Market Committee would convene on December 13 and 14, which would likely strengthen the US dollar against currencies in Asean and cause foreign capital to move out of the stock markets of Thailand, Indonesia and the Philippines (TIP).
In Thailand, KTB Securities expects foreign investors to continue sales of Thai stocks, or not to buy them, which will pressure the SET and make other investors afraid of stock purchase during this period, Mongkol said.
The SET Index yesterday rose 0.98 per cent or 14.82 points to close at 1,516.48 with trading turnover of Bt39.69 billion as foreign investors netbought Bt1.24 billion.