Daily Strategy: ASL Is Positive on QE Tapering, Recommends Reopening Stocks

Major stock markets in Asia traded higher on Thursday after the Fed announced an asset tapering later this month amid falling oil prices.


Thailand’s SET Index opened flat at 1,611.88 points on November 4, 2021.

As of 10:20 local time in Thailand, Nikkei rose 0.92%, SSE Composite gained 0.64%, Hang Seng Index increased 0.44%, ASX 200 advanced 0.30% and IDX Composite hiked 0.92%.


Last night, the Federal Reserve said that it will begin tapering the pace of its asset purchases later in November. The Fed will adjust open market purchases of treasuries to $70 billion per month of treasuries and $35 billion per month of mortgage-backed securities in November. For December, the Fed will adjust open market purchases of treasuries to $60 billion per month of treasuries, $30 billion per month of mortgage-backed securities.

In addition, the Fed predicted that inflation will fall by 2 or 3 percentage points in the next quarter, but the timing of inflation easing is highly unknown, although it is expected in the second or third quarters of next year.

Meanwhile, oil prices continued to decline after Iran and world powers agreed to resume nuclear talks this month which could lead to the removal of U.S. sanctions on Iranian oil, resulting in an increase in global supplies. Meanwhile, weekly crude stocks rose by more than 3.3 million barrels.

West Texas Intermediate traded at $80 per barrel, and Brent crude was at $81.37 a barrel.


Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities Co., Ltd., through “Kaohoon Jor Talad Program” on November 4, 2021, had a positive outlook on the overall equity market after the Fed announced a tapering, expecting the market to move in positive way and to take a year or two to recovery from global crisis, citing on the recovery time of previous ones.

As for the Thai stock market, Mr. Suktae recommended TIDLOR (S35/R38.50-40), MINT (S32-33/R35), AMATA (R22-23) and ADVANC (S190/R203), giving a support level for SET Index at 1,600 points and a resistance level at 1,630 points.