Yesterday's market: The SET tumbled right after the bell after the counting of Brexit referendum showed prospect that the U.K. would leave the EU. However, after the leave result was clear, there was buyback that supported the SET to stabilize better and erase some of its early loss in the second half of the day.
Today's outlook: Although both U.S. and European stock markets ended sharply lower, it was due solely to the Brexit result, which most Asian equity markets have factored in since last Friday. Given that, although our Asian peers continued to fall this morning, the loss was not as large. Moreover, FSS expects the SET to see even more limited impact. In particular, we expect buyback in shares that hardly see any impact and stocks that benefit from the exit. However, investors need remain cautious over the counters that we expect to be hit, a list of which has been compiled by FSS. In addition, we continue to believe that when the SET falls, there will be buying to provide support, making it possible for the index to turn to a new round of rallies. Specifically, we expect the SET to climb to our index target of 1500 going forward.
Strategy: For these reasons, FSS recommends that investors buy on weakness. After which, we suggest that investors hold, waiting for a new round of rallies and taking profit.
Support 1410-1403 , 1393-1390
Resistance 1418-1422 , 1430-1438
Source: fnsyrus.com / settrade.com
