Krungsri Securities Public Company Limited estimates the SET to fluctuate between 1,585 and 1,600 points, despite being supported by a dot plot indicating that the Fed is close to slowing down on raising interest rates, with one more hike this year to 5.1%. As a result, US Bond yields declined, coupled with buying pressure from the Trigger Fund, which was positive for market conditions. However, weaker crude oil prices as well as selling pressure to lower the 1,600 resistance level will pressure the index to weaken.
Investment strategy: Selective Buy GPSC BGRIM GULF ROJNA SCGP SCC TASCO CBG OSP Weak energy costs KCE HANA BE8 BBIK virtue NASDAQ index rallies strongly BDMS BCH INTUCH ADVANC Defensive group Index is volatile.
As for today’s recommended stock, BGRIM (closing 40.50 buy/TP Bt48 IAA Consensus) benefited from lower energy prices. The Thai baht appreciated, while the Ft decline was not affected as it was offset by a larger drop in gas costs.
MTC (closed 34, buy target BB Consensus at Bt36.75) Share price has declined already reflecting last year’s weak performance. Short-term positive sentiment from lower US bond yield reflecting lower finance costs in the future.
Today’s Key Points BoE raised interest rates by 0.25% as expected after rising inflation: BoE voted 7:2 to raise interest rates from 4% to 4.25% to curb inflation after UK inflation rose in February. It hit 10.4% from a drop of 10.1% in January.
Auto group, good signs production, sales and exports continue to grow: FTI reported car production in February 2023 increased to 165,612 units, an increase of 2.02% mom and 6.39% yoy (+AH, SAT ), domestic car sales rose 9.1%mom (KKP, TISCO, TCAP) but contracted 3.94%yoy and exports totaled 88,525 units, up 2%mom and 11.42%yoy (+NYT).
Next week, the Bank of Thailand meets to raise interest rates by 0.25%: We maintain our view, expecting the Monetary Policy Committee (MPC) meeting on March 29 to raise interest rates by 0.25% from 1.5% to 1.75% and is expected to be the last increase of this year after Thailand’s headline inflation rate (Feb. 3.79%) has dropped to the target inflation range of 2% (+/-1%).