Bangkok Post – SET poised to attempt a recovery in the coming week

During the past two weeks, the Stock Exchange of Thailand headed south to test support at around 1,400 points, before staging a rebound on the back of short covering and technical signals.

There were several excuses for investors to dump shares in the past week as the market tends to overreact in bearish mode. They included worries over bad debt in the banking sector, foreign brokers downgrading Thai banks, pressures against high interest rates, speculation that the US Federal Reserve might not cut rates as fast as previously expected, China-Taiwan tensions, the Red Sea crisis, and so on. Thus, defensive plays seemed to outperform the overall market.

However, we noticed that outperformers generally are Alpha stocks with specific catalysts, implying that, deep down, investors are still in risk-on mode. These stocks include clean energy-related…