The SET index yesterday rose to within a hair of 1,600 points due to numerous external factors, although domestic news will likely drive the gauge next week.
Stock markets across Asia traded actively amid signs of a US economic recovery.
The SET shot to a peak of 1,599.89 points in midday trade before dipping to close at 1,598.13, up by 0.7%, in heavy trade worth 76.8 billion baht.
Foreign investors were net buyers of 3.99 billion baht, while domestic investors were net sellers of 2.31 billion.
Local institutions were net sellers of 1.33 billion baht, and brokers were net sellers of 353 million.
Chai Chirasevenupraphund, the head of research at Capital Nomura Securities, said the index could easily break 1,600 points next week, propelled by such outside factors as the new Bank of Japan governor, China's new premier and the US recovery, plus internal factors such as the government's investment budget of 2.2 trillion baht for megaprojects.
"The market will have several local news stories to play up over the next few weeks, such as first-quarter earnings and economic reports," said Mr Chai. "Thus we recommend playing domestic shares."
Recommended sectors are construction, materials, tourism, banking and real estate as well as dividend plays.
Capital Nomura Securities sees the next resistance line at 1,620 to 1,625 points with support at 1,580 next week.
About the author
Writer: DARANA CHUDASRI