POST-POLL UPSWING CONTINUES ON SET

Thai shares rose for most of this week, with the SET index approaching the key psychological and technical resistance level of 1,500 points, before a dip prompted by profit-taking and geopolitical stress on Friday.

- BUALUANG SECURITIES

The run-up reflected a catch-up valuation buying pattern in a market that has been a regional laggard for an extended period.

Gulf Development Plc was the highlight after it reported better earnings than expected, while an announced dividend of 3.25 baht per share (including special dividend) added to the momentum. Other heavyweight stocks such as BH and SCB also announced unusually high dividends, which bolstered market sentiment.

We have started to detect signs of rotation from the accumulation of blue chips to mid-cap and underperforming shares, reflecting a more broad-based market. Although momentum remains solid, the market is tightening as we approach 1,500 points and we will see periodical profit-taking.

We expect the SET index to stay rangebound between 1,480 and 1,500 points next week. Strategic trading is still possible as long as foreign players do not turn into net sellers, while domestic funds are waiting to buy shares, particularly after some investors cashed out earlier and have liquidity in hand to absorb potential short-term selling.