InnovestX sees sideways market ahead of Fed, picks KTB and ERW as top stocks

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Summary · why it matters

InnovestX Securities expects the SET Index to trade sideways in the short term, with the market pricing in a 94.5% probability that the US Federal Reserve will raise interest rates by 0.25% at its meeting on September 15–16. This has pushed the 10-year US bond yield up to 5.041%, the highest in 19 years, pressuring risk assets into volatility. The brokerage is also watching the Bank of Japan meeting on September 18 for signals on policy rates and the impact on the yen carry trade, which will directly affect global fund flows. Meanwhile, Brent crude rose 2.9% day-on-day to close at 108.75 US dollars per barrel after Saudi Arabia halted oil loadings at Yanbu port and cancelled delivery voyages to European customers, reflecting tight supply conditions that could persist for several weeks. The investment strategy therefore recommends Selective Buy, focusing on Buy on Dip timing, with a positive view on banks BBL, KTB and KBANK, insurers BLA and TLI, and energy names PTTEP, TOP, SPRC and BCP. Today's top picks are ERW with a short-term target of 3.94 baht and KTB with a short-term target of 45.25 baht.

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