Asia Stocks Trade Mixed, Analyst Expects Limited Upside for SET over High Valuation

Stocks in Asia started to trade mixed after a long rally on positive sentiment over the lockdown easing. Meanwhile, S&P 500 turned positive for the year overnight after a sharp gain in Wall Street.

 

As of 9:03 local time in Thailand (GMT+7), Nikkei dipped 0.48%, SSEC rose 0.25%, HSI edged 0.99% higher, ASX 200 jumped 2.74% and Kospi dropped 0.23%.

Overnight, Dow Jones soared 461.46 points or 1.70% to close at 27,572.44 points. S&P 500 turned positive for the year with a gain of 38.46 points or 1.20% to settle at 3,232.39 points. Meanwhile, Nasdaq closed 1.13% higher and already well passed the positive line for the year.

 

Oil prices rebounded more than 1% in the morning of Asian trading hours after a slump of 3% overnight on the comment of Saudi, saying that it will not make another voluntary cut this month. WTI rose $0.52/bbl or 1.36% to $38.71/bbl. Brent gained $0.49/bbl or 1.20% to $41.29/bbl.

 

Krungsri Securities has neutral view for today’s trading session, expecting SET Index to move between 1,425-1,450 points, even though the market could have had positive sentiment from Wall Street, the statement from Saudi Arabia could have shaken oil-related stocks after the country vowed not to add an additional voluntary cut, the same move in May.

Finansia Syrus Securities stated that the Thai stock market might still have positive sentiment from the fund inflow, but the high valuation in the market around 17x might cause limited upside to the market.