Yesterday's market: The SET started to move in negative territory all day because there was selling that pressured the index to continue to fall, while there was no fresh catalyst. The selling came mainly from domestic institution owing probably to concern over domestic politics which remains largely uncertain as a key referendum on the draft charter is due on this Sunday, August 7.
Today's outlook: We expect the SET to remain on its downward path as both U.S. and European stock markets continued to tumble overnight due to investors' lack of confidence after the release of European banks' stress test results. Moreover, U.S. economic data released lately were weak, while global crude continued to weaken. In particular, crude dropped to move below US$40 a barrel. Given that, most Asian stock markets opened sharply lower as investors chose to remain on the sidelines, waiting for U.S. oil inventories report tonight and U.S. non-farm payrolls this Friday.
Strategy: The SET plunged by nearly 40 points in the last two trading days to trade below 1500 as we have anticipated. For this reason, we recommend that investors wait and selectively accumulate on weakness.
Support: 1495-1490 , 1485-1480
Resistance: 1500-1505 , 1508-1512
Source: fnsyrus.com / settrade.com
