We expect the SET Index to continue to be volatile given the higher global recession risk, as many central banks are expected to keep raising interest rates to fight inflation. Adding to the negative factors, the US dollar continues to strengthen against other currencies and the prolonged Russia-Ukraine war has taken a toll on energy markets.
As well, the Chinese Communist Party Congress in mid-October might influence the market's direction. While the main focus will be on the expected approval of another term for leader Xi Jinping, many investors believe authorities might also announce an easing of the zero-Covid policies that have had a severe impact on the world's second-largest economy.
