Look for growth stocks that lagged the market

The SET Index looks vulnerable to concerns about the transfer of political power and the coming Federal Reserve meeting. The index could plummet if investors lack confidence in the new government and if the Fed hikes its short-term rate at a faster pace than expected. Among factors affecting the market:

Local politics: The Election Commission has until mid-July to endorse the results of the May 14 polls, though many hope it will complete the process sooner to end the suspense. The Move Forward-led coalition continues with preparations to form a government but it could face a setback if a ruling on media share ownership goes against Move Forward leader Pita Limjaroenrat.

Foreign fund flows: Foreign investors were net sellers of 31 billion baht worth of Thai equities in May. If…