KTBST Securities forecasts the SET Index to keep on rising after Ukraine and Russia signal progress in their talks and the US Federal Reserve approves its first rate hike in more than three years.
Hopes for diplomatic progress toward an end to the war surged after Ukraine’s president, Volodymyr Zelenskiy, revealed Tuesday in the most explicit terms yet that Ukraine’s objective of joining NATO is unlikely to be fulfilled. Vladimir Putin has long portrayed Ukraine’s pursuit of NATO membership as a danger to Russia.
Zelenskiy said he sees opportunity for compromise in discussions with Russia ahead of a fresh round of talks, despite Moscow’s stepped-up bombing of Kyiv.
Ukrainian and Russian delegations held talks again Wednesday by video.
KTBST believes that these talks will benefit Thai equities, excluding those that have previously gained from a tense crisis, such as the PTTEP.
Meanwhile, the Federal Reserve approved a 0.25-point rate hike, the first since December 2018. Officials signaled an aggressive route forward, with rate rises coming at each of the remaining six meetings in 2022. This is in line with what the market expects, and hence stocks have been priced in. As a result, it is unlikely to have a significant impact on the market today.
For investment, KTBST recommends stocks that will gain from COVID-19 being declared endemic in July and the government easing further COVID restrictions. WHA, AMATA, AOT, CRC, and MINT are the top picks.
