Maybank Kim Eng: Daily Strategy for Investors on March 7, 2019

Maybank Kim Eng Securities has made an analysis of the trading session of March 6, 2019, stating that the SET experienced a sell-off, driven by strong selling pressure on big caps such as KBANK, CPALL, SCC with PTT posting XD for dividend of ฿1.20/share. However, a buying pressure was seen on TASCO. The index closed at 1,625.5 points (-13.4 points) with a trading value of ฿44 billion, up from ฿41 billion the previous day.
Foreign investors continued to net sell Thai shares for the 8th  day by ฿2.6 billion while Institutions continued to net buy by ฿859 million. There were net short on SET50 index future by 490 contracts.

 

Technical View
SET to dip below support at 1630 points, more downside while the next support is 1600 points. For mid-term: strong selling pressure on big caps in all sectors has pushed the index to slip through the key support at the neckline of 1630. Coupled with the MACD indicator crossing down the signal line, it is likely the index is forming a triple top reversal pattern. The downside for mid to long term opens wider, with the next supports being at 1615 points and 1600 points, respectively. If SET technically rebounds intraday, Maybank recommends to sell stocks to reduce portfolio.

 

Investment Strategy
1) Investors with stocks, if the index dips below key support 1630, lock profit or stops loss. If rebound, sell stocks to reduce portfolio.
2) Without stocks, wait until the trend stops sliding and rebounds at supports.

 

Maybank sets a support line at 1600 points and 1615 points, while setting a resistance line at  1633 points and 1640 points.

 

Keep an eye on
1) Trump to meet Xi Jinping on trade war talks on March 27, 2019.
2) Constitutional Court to rule on the Thai Raksa Chart dissolve today.