Yesterday's market: The SET opened down by over five points in line with international investment sentiment that was not quite bright after Brexit impacts and weak global crude price. However, there was buyback momentum afterward, which supported the index to gradually climb back to positive territory and end up modestly in the end.
Today's outlook: Although most European stock markets continued to end lower, pressured by selling in banks after investors were concerned that European banks would be hit by Brexit, Wall Street turned to close up, positively responding to minutes of the Fed's meeting in June, which showed that the U.S. central bank was likely to slow their interest rate hike. Moreover, there was support from bright U.S. economic data after service-sector PMI surged, while global crude recovered by nearly 2%. Given that, several Asian stock markets began to move up, which makes it likely for the SET to continue to move in the positive territory. Nonetheless, investors need to remain cautious over volatile as some investors might want to wait for U.S. employment data over this weekend.
Strategy: FSS continues to believe the SET will be volatile and retreat briefly before the index climbs to our index target of 1500 going forward. For this reason, we recommend investors continue to hold and selectively buy on weakness.
Support: 1450-1444 , 1440-1436
Resistance: 1455-1457 , 1460-1462
Source: fnsyrus.com / settrade.com
