Daily Strategy: SCBS Expects SET to Trade within 1,630-1,650pts ahead of Fed’s Meeting

SCBS expected volatility after Fed's announcement of tapering, recommending selective buy on 3Q21 earnings stocks.

Major stock markets in Asia traded mostly higher in the morning session on Monday after China Evergrande resumed work on more than 10 projects while the Fed said the U.S. central bank should start the asset tapering process, but should not yet touch the interest rate.


On October 25, 2021, Thailand’s SET Index opened at 1,643.89 points, increased 0.47 points or 0.03%.

As of 10:15 local time in Thailand, Nikkei fell 0.99%, Shanghai Composite rose 0.28%, Hang Seng Index gained 0.05%, ASX200 increased 0.37% and IDX Composite edged 0.051% higher.


On Saturday, China Evergrande Group said that more than 10 working projects in six cities had resumed work after the company was reportedly paying the coupon on a bond due September 23 before the grace period ended on Saturday. The company announced in August that some projects were suspended because of delays in payment to suppliers and contractors.

Meanwhile, Federal Reserve Chairman Jerome Powell said the U.S. central bank should start the asset tapering process, but should not yet touch the interest rate. The Fed has promised to keep its interest rate at the current near-zero level until the economy has returned to full employment and inflation has reached the 2% target.


Mr. Ekpawin Suntarapichard, investment strategists of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on October 25, 2021, expected the Thai stock market to move within 1,630-1,650 range as the real sector will announce its earnings following the banking sector last week.

Mr. Suntarapichard stated that the highlight should be the Fed’s meeting next week in which the market had anticipated a QE tapering announcement and could result in a volatility in the market. SCBS’ strategist cautioned that the Thai stock market could continue to plunge if falling below the resistance level of 1,630 points, recommending a trading or selective-buy strategy for investors.

The reopening sentiment had already reflected to the share price of reopening stocks, Mr. Suntarapichard said, and added that earnings should bottom out in 3Q21 and would face a  profit taking, thus, recommended buying on weakness.

As for stocks benefiting from LTV measures, Mr. Suntarapichard recommended SPALI and AP, while expecting TNP’s earnings to outperform in QoQ-YoY and into next year.

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