Finansia Syrus Securities (FSS) wrote in its note that it expected Thailand’s SET Index to move in a sideways trend following the sentiment in global trading that lacks positive drivers, seeing a short-term support level for the index at 1,610 points as the market is still concerned about potential recession in the U.S. and Europe due to the impact of high and long inflation in the last 12 months. Meanwhile, the Fed and ECB’s monetary policy has a potential of continuous tightening throughout 2023, resulting in outflow from risk assets to bonds.
Still, FSS saw the economy in Asian countries stronger than the west, especially ASEAN that has the push from rising domestic demand and recovering tourism. The firm also expected Thailand to receive positive impact from China’s continuous relaxing Covid control, stimulus package and election next year, which could negate weak exports from global economic slowdown.
FSS maintained its eyes on Domestic and Consumption Play, seeing BBL, BDMS, CRC, M and MAJOR as top picks this month.