Daily Strategy: CNS Expects SET Index Slowdown amid QE Tightening Concerns

Major stock markets in Asia traded lower in the morning session as investors digested information from the two-day meeting of the Federal Reserve last night that gave a solid confirmation of upcoming rate hikes.


On January 27, 2022, Thailand’s SET Index opened at 1,633.78 points, decreased 9.66 points or 0.59%.

As of 10:05 local time in Thailand, Nikkei plunged 2.55%, SSEC fell 1.07%, Hang Seng Index decreased 2.01%, ASX 200 dropped 1.83% while IDX Composite rose 0.32%.


Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on January 27, 2022, stated that the Fed’s statement last night was not any different than what the market had expected, but the tone and statement from Jerome Powell, Fed’s Chairman, concerns investors of QE tightening that could come as soon as June after the rate hike in March and the Fed’s meeting in May.

Mr. Vorachet expected the Thai market to slow down, giving a support level at 1,620 points and a resistance level at 1,650-1,660 points. As for a mid-long term investment strategy to enter while the market is weakened, the strategist recommended banking stocks such as KBANK, SCB and KKP. Meanwhile, ADVANC and TRUE are top picks among the ICT sector. AP and SPALI are popular among yield-play and value-play for the property sector.