Daily Strategy: FSS Expects Strong 4Q Outlook for Banks, Targeting SET Index at 1,670pts

Finansia Syrus Securities expected energy stocks to lead SET Index to 1,670pts amid rising oil prices, while seeing strong outlook for Thai banks in 4Q onward.

Major stock markets in Asia traded higher on Friday, following a rally in Wall Street last night on lower-than-expected jobless claims, while oil prices remain at a higher level.


Last night, The U.S. Labor Department reported 293,000 jobless claims last week, beating the expectation of 319,000 claims by economists.

Dow Jones closed 1.56% higher, S&P 500 jumped 1.71% and Nasdaq gained 1.73%.

Brent crude rose 0.7% to close at $83.76 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) rose to $80.96 per barrel.

On October 15, 2021, Thailand’s SET Index opened at 1,646.99 points, increased 6.02 points or 0.37%.

As of 10:10 local time in Thailand, Nikkei rose 1.29%, Shanghai Composite edged 0.08% higher, Hang Seng Index increased 0.59%, Australia ASX 200 advanced 0.51%, while Indonesia IDX Composite fell 0.31%.


Mr. Kantara Ladawan na Ayutthaya, executive director of Finansia Syrus Securities (FSS), through “Kaohoon Jor Talad Program” on October 15, 2021, stated that the energy sector could lead the Thai stock market to reach its goal at 1,670 points amid rising oil prices that could hit $100 a barrel, and could make a surprise for the sector for a stock gain in 3Q.

As for the reopening theme, Mr. Ladawan stated that the hotel and restaurant stocks have already priced in the factor as well as the energy sector. The next group to benefit from the reopening would be the banking sector that is expecting to bottom out and post an outstanding performance from 4Q onward.

In addition, Mr. Ladawan expected SET Index next week to move in sideway-up trends and advised investors to speculate on weakness.


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