Yesterday's market: The SET moved in negative territory nearly all day after there was no fresh catalyst to support. However, there was buying in the last hour, especially in energy shares, thanks probably to global crude which turned to be up again in the afternoon.
Today's outlook: We expect the SET to continue to increase after global crude surged by nearly 2% thanks to U.S. oil inventories which dropped by over 3mn barrels last week. Meanwhile, the Baht continued to appreciate owing to U.S. dollar depreciation after investors decreased the expectation for a Fed rate hike at a meeting due mid this month (June 14-15). However, we continue to recommend that investors are cautious over selling when the index increases because it will pressure the market to be volatile and fall after a strongly and quick rally lately. Moreover, Asian equity markets' gain was modest this morning and some even recorded a loss.
Strategy: Given that, FSS now recommends that investors hold, waiting for a new round of rallies. Our index target is 1500 or close. However, if anyone wants to place more bets, we suggest that they do so on weakness.
Support 1443-1440, 1436-1430
Resistance 1446-1450 , 1455-1462
Source: fnsyrus.com / settrade.com
