Daily Strategy for Investors on April 22, 2020

Krungsri Securities released an analysis for the trading session on April 22, 2020, indicating the essential events in the stock market as follows:

 

Market Recap

The SET Index slipped 13.5 points (-1%) to close at 1,252 in Bt58b turnover, in-line with weakness in regional markets. The market was pressured by Energy (oil) and Petrochem sectors after oil futures prices slumped on demand concerns. There was also sell-on-fact activity in the Bank & Finance sector following the release of results. Foreign investors were net sellers of Thai stocks at Bt6,103m Thai and bonds at Bt203m, but Net Long TFEX at 3,388 contracts.

 

Market Outlook

Krungsri is negative on the market today, expecting the SET Index to drop to 1,225 – 1,235 support level before rebounding. The market will continue to be pressured by weak oil prices on concerns over weak demand and oversupply, and weak earnings outlook for the real sector due to the Covid-19 impact. However, Krungsri  expects the index to rebound intraday amid news that Thailand’s PM will review the lockdown measures on April 28.

 

Investment Strategy: Selective Buy

1) Beneficiaries of plummeting oil prices: TASCO, EPG, IVL

2) Limited impact from Covid-19:  ICT (ADVANC, INTUCH, DTAC), Food (CPF) and Utilities (TTW, BCPG)

3) Commerce (CRC, CPN, HMPRO, GLOBAL, COM7) and Hotel (AOT, CENTEL, MINT, ERW) on fewer new Covid-19 cases and expectations the government would lift the lockdown.