Phillip Securities (Thailand) Plc Market comment 27 September 2007
Market Trend: Hold bet on the rising trend to test key barrier at 850-860
Yesterday, Thai shares surprisingly staged a stronger-than-expected rally, up more than 9 points as end-of-quarter window-dressing helped support the market though foreign investors turned net sellers of shares worth more than Bt600m.
Today, positive momentum is likely to continue while external mood is quite positive as overnight gains of nearly 100 points on Wall Street helped turn regional sentiment more bullish in this early trade. Global oil prices also rebounded to settle above the US$80/barrel mark. Near-term technical outlook has still retained a bullish view of a continued up-trend with the likelihood of moving up to test critical resistance level at 850-860. For today’s investment strategy, we recommend investors follow BUY with a focus on energy, banking, property and brokerage sectors.