SET index expected to drift down due to political turmoil in the country, said analysts

The Stock Exchange of Thailand (SET) index is expected to drift below 1,340 points in absence of fresh positive factors, analysts said on Wednesday, as the market would be weighed down by concerns over worsening political turmoil in the country.

There were renewed worries on Tuesday evening over Thailand’s political scene after security officials used water cannons and teargases to control pro-democracy protesters, said analysts at Krungsri Securities.

SET index would test at 1,340 support level as there are no positive catalysts to boost the market, they added.

The research team said that they expect the parliament to accept only certain drafts among the seven of the charter amendments. They also expect a possible reject to the one proposed by iLaw due to controversial matters.

“This could upset protesters and lead to more anti-government demonstrations,” explained the analysts.

Meanwhile, Philip Securities also predicts that despite the progress on vaccine news, domestic political situations will continue to be the main factor in pressuring the stock market as protesters schedule a rally at Ratchaprasong intersection again on Wednesday evening.

“The incident of violence during the protest could cause selling pressures to investors,” said Philip analysts. 

As of market intermission on Wednesday afternoon, the SET index dipped down to 1,349.25 points, down 0.56 points, after sinking down 5.63 points when the trade began. The transaction value stood over 34.64 billion baht.

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