Daily Strategy: CNS Expects Market to Slowdown in Upcoming Weeks amid Fund Outflow

Capital Nomura Securities expected the Thai stock market to slowdown for the next week or two amid fund outflow from emerging market.

Major stock markets in Asia traded higher on Thursday, led by a high surge in Hong Kong stocks amid optimism in the U.S. for the debt ceiling while Wall Street closed higher last night.


On October 7, 2021, Thailand’s SET Index opened at 1,626.90 points, increased 7.42 points or 0.46%.

As of 10:05 local time in Thailand, Nikkei rose 1.68%, Hang Seng Index jumped 2.26%, Australia ASX200 gained 0.60% and Indonesia IDX Composite increased 0.31%.

Last night, Dow Jones rose 0.30%, S&P 500 gained 0.41% and Nasdaq increased 0.47%.


Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on October 7, 2021, stated that the better-than-expected private employment data in the U.S. caused a fund outflow in emerging markets and the slowdown in oil prices could hold back the Thai stock market, especially the energy sector.

Mr. Vorachet had a better outlook on Thailand, seeing better performance in various sectors and higher vaccination rate. However, the flooding crisis and political issues should be keeping an eye on.

As for the new formula to adjust SET50 and SET100, Mr. Vorachet expected the Thai market, especially big-cap stocks with low free float to fluctuate if the trading alert and cash balance are implemented, while the market should be less affected if one of the aforementioned measures are implemented. The analyst recommended to follow up on the hearing on this matter.

In addition, the analyst expected the Thai stock market to slow down in upcoming weeks, while giving a support level for today’s session at 1,611 points and a resistance level at 1,635 points.

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