Strategy: FSS expects the SET to have limited upside. Moreover, the index is likely to continue to decline to build up base for a new round of rallies. For this reason, we recommend that investors gradually accumulate on weakness and then hold, waiting for a new round of rallies.
Technical stocks: DELTA, MINT, GLOW(buy back)
Market direction: The SET continued to have limited upside and was capped by selling when it increased. Given that, the index continued to decrease after there was no fresh catalyst to provide support. Meanwhile, concern over a Fed rate hike at the next meeting scheduled on June 14-15 continues to pressure after a Fed official supported a policy rate increase, while global crude begins to weaken after a sharp surge in the last round. Lately, it was capped by news that Iran would raise its output, which triggered investor concern over supply glut, even though the OPEC is scheduled to meeting on June 2. Last night, most European stock markets ended lower, while Wall Street was volatile. Although they moved in positive territory nearly all day, it turned to close slightly down in the end. With that, most Asian equity markets opened lower. In Thailand, FSS expects the aforementioned to pressure the SET to continue to decrease. However, market liquidity remains quite plentiful and there is optimism about Thailand's economic outlook in 2H16. As a result, it is possible that there will be buyback momentum to support the market when it declines prior to a new round of rallies afterward. For this reason, we recommend that investors buy on weakness and then hold.
Support 1380-1375, 1370-1365
Resistance 1384-1386 , 1388-1392
Source: fnsyrus.com / settrade.com
