Strategy: There was no progress from the OPEC meeting, while the concern over a Fed rate hike continued to pressure markets and there was no fresh catalyst to provide support. Given that, FSS expects the SET to continue to be volatile and fall and recommends that investors wait to buy on weakness. For medium-term investment, we suggest that investors continue to hold.
Technical stocks: GFPT, BM, PLAT(buy back)
Market direction: Yesterday, the SET was able to turn to increase. However, it was still within the range seen the day before yesterday prior to results from OPEC meeting late in the evening whether the oil cartel would be able to agree over oil output or not. As it happened, the group of major oil producing countries was unable to clinch a deal, pressuring global crude to fall in the beginning. However, it was able to rebound in the end to close slightly up thanks to lower U.S. weekly oil inventory. Meanwhile, some U.S. and European stock markets continued to close up after the ECB raised its forecast for economic expansion in the eurozone and this year's inflation. What's more, U.S. ADP private-sector employment also increased in May. With that, investor concern over global economic slowdown somewhat eased, which makes it possible for most Asian stock markets to open higher this morning. However, the concern over an early Fed rate hike persists. Given that, Asian gain was modest. In this regard, FSS also expects the SET's upside to be limited. Moreover, investors still need to watch out on selling that will pressure the index to be volatile and retreat. For this reason, we maintain our call for investors to wait and buy on weakness.
Support 1422-1418, 1415-1412
Resistance 1426-1428 , 1430-1433
Source: fnsyrus.com / settrade.com
