Strategy: There is no fresh catalyst to provide support. Moreover, the concern over a sooner-than-expected U.S. policy rate hike and a Brexit from the EU continue to pressure the market. Given that, we expect the SET to continue to decrease. In addition, we recommend that investors wait to buy on weakness and hold the already-have position, waiting for a new round of rallies which we expect to take place shortly.
Technical stocks: ITD, SPA, GPSC(buy back)
Market direction: Last week, the SET strongly rebounded nearly all week. In particular, the index surged by over 10 points last Friday, while foreign investors registered a heavier net buy position. We believe that part of the buying is from speculation on prospect that the Fed will continue to put off a rate hike at a meeting on June 14-15. However, the Fed Chair said in her speech at Harvard in the evening that a rise was probably appropriate in the coming months. Although it reflects confidence that U.S. economy is strong, it also triggers fear over a sooner-than-expected rate increase. As a result, most Asian stock markets opened lower this morning and were quite volatile. In Thailand, FSS views that investors still need to watch out on market volatility and a retreat because we believe that some investors will continue to wait for U.S. employment data that is due out late this week. Moreover, they will continue to eye at a Brexit from the EU, whose result will become known on June 23. For this reason, we recommend that investors buy on weakness.
Support 1410-1405, 1400-1396
Resistance 1415-1417 , 1420-1423
Source: fnsyrus.com / settrade.com
