Strategy: The SET began to fall at a higher rate after its strong rally earlier. Given that, FSS expects the index to continue to retreat and recommend that investors wait to buy on weakness as investors wait for results from OPEC and ECB meetings today as well as U.S. non-farm payrolls that are due out tomorrow (June 3). All of which will give a clue about interest rate hike at FOMC meeting mid this month (June 14-15).
Technical stocks: VTE, AGE, THAI(buy back)
Market direction: The SET started to decrease at a faster pace after its strong increase recently, while there was no fresh catalyst to provide support. Moreover, there was pressure from the concern over a Fed rate hike. Lately, U.S.'s Institute for Supply Management (ISM) revealed that the country's manufacturing sector expanded in May, the third consecutive month, while the Fed's Beige Book also indicated that most regional economies in the U.S. expanded quite well. What's more, China's economic slowdown continued to provide downward pressure on the market after the country's PMI continued to decrease. Given that, most Asian stock markets opened lower this morning, which should put a cap on Thai equity markets, causing it to continue to decrease. However, global crude was down at a slower pace last night. This implies optimism that the OPEC might introduce new measures at its meeting today. For these reasons, it is possible that the SET will continue to swing wildly up and down within range. Finally, FSS recommends that investors wait to buy on weakness and hold the position that is already placed.
Support 1412-1410, 1405-1400
Resistance 1416-1418 , 1420-1425
Source: fnsyrus.com / settrade.com
