Krungsri Securities Company expects the trendstock indexThailand fell today (September 19, 65) at a support level of 1620 – 1625 points. Market conditions are still under pressure from concerns about the remaining global economic slowdownFedand many central banks accelerated interest rates to curb inflation, leading to US Bond Yieldforeign currency rose and flowed out during this period.
However, optimism is expected to help boost the index’s rebound, and on September 21, follow the Fed meeting. Expect an interest rate hike of 0.75 – 1% and the BOJ meeting expects the interest rate to remain unchanged -0.1%.
- (-) Next FED Meeting Expected 0.75% Interest Rate Increase: FED Meeting 20-21 September We maintain the same view that we expect the Fed to raise interest rates by 0.75% for the third time in a row In order to reduce inflation to the target level of 2% and follow the statements of the Fed chairman and the FED dot plot to catch the signs of interest rate hikes and the number of rate hikes next year.
- (+/-) BoJ expected to keep interest rates unchanged, but BoE continues to raise interest rates to curb inflation: Although the Monetary Policy Committees of Japan (BoJ) and Britain (BoE) meet this week on the same day , September 22. But the policy direction is different, with the BoJ expecting to keep the interest rate unchanged at -0.10% to help the economy recover from the coronavirus crisis, but the BoE expecting to raise rates 0.5% to 2.25% interest to curb high inflation.
- (+/-) Subsequent manufacturing at the end of the weekend PMI from major economies: If the numbers continue to fall, it will still be a negative sign, reducing investment in risky asset markets. especially the United States If the number is below the 50 level, it will cause concern to the market, especially the recession or the current recession.
Investment Strategy: Selective Buying
- KBANK BBL SCB KTB TTB BLA TLI benefits from higher interest rates
- BEM BTS INTUCH ADVANC DTAC BDMS BH Defensive stocks during volatile market
- CPF TU GFPT TFG enters high season, exports and depreciation of the baht
Recommended stocks today
- EPG earnings (close 10.30, buy / target 14.5 baht) are expected to pass the lowest point. All business segments returned to recovery mode Short-term positive sentiment from lower oil prices and a weak baht, directly positive for EPG as 60% of its revenue comes from overseas.
- TLI (close 16.8 BUY / target IAA Consensus 19.30) has positive sentiment from higher government bond yields. while at the end of the year, there is a chance to be calculated in the MSCI index and the new SET 50 rounds