Since the beginning of this year, the Stock Exchange of Thailand has been trading in sideways-up mode on persistent foreign buying amid a generally upbeat "January effect". Popular blue chips among foreign players, such as Indorama Ventures (IVL) and Bangkok Bank (BBL), have performed rather well and partly offset selling pressures from local funds.
Some holders of long-term investment fund (LTF) units became eligible to redeem units from the beginning of this year after holding them for seven calendar years. The market had avoided such redemptions during the past two years due to a change in the holding requirement from five to seven years. Therefore, the overall SET index outlook in the first half of January was not as bad as previously anticipated.
In the final week of January, we expect the SET to continue in a sideways-up pattern in the range of 1,670 to 1,690 points. Brokers will be issuing more fourth-quarter 2021 earnings previews for the real sector before the earnings reporting season begins in earnest in February. Some banks have already released results this week.
