Yesterday's market: The SET began to fall sharply in the afternoon, even though there continued to be buying that drove the index to hit a new high in the morning. Such loss can be blamed partly on selling to lock in profit and reduce risk after the SET has rallied quite substantially, while there was new fresh catalyst to support.
Today's outlook: The SET looks set to continue to move sideways down as we have anticipated after most European stock markets ended lower last night due to a drop in bank shares. Moreover, global crude turned to fall by over 3%, pressuring Wall Street to be volatile and move in negative territory. However, the losses were modest. Finally, U.S. economic data released last night were weaker than expected. Given that, most Asian stock markets turned to move in the red. In Thailand, some investors might want to wait for clarity over Thai politics after a referendum on the draft charter on Sunday, August 7. No matter what, FSS expects the SET's fall to be brief. We have raised our 2016 index target to 1650 to factor in the higher corporate earnings outlook and the continuous inflows of international funds.
Strategy: FSS maintains our call for investors to wait to buy on weakness.
Support: 1510-1508 , 1505-1497
Resistance: 1516-1520 , 1522-1526
Source: fnsyrus.com / settrade.com
