SET Edges Higher as the Analyst Recommends Short-Term Speculation on Energy Stocks

SET Index opened higher on Thursday amid a fluctuation in Asian stock markets as the Fed vowed to keep the policy rate unchanged.

 

As of 10:05 local time in Thailand, SET Index rose 4.64 points or 0.30% to 1,573.22 points. Nikkei dipped 0.67%, SSEC rose 0.52%, HSI fell 0.22%, ASX 200 increased 0.08% and Kospi slipped 0.67%.

 

Asia Wealth Securities (AWS) expected the SET today to move in the range of 1,545-1,580 points. The stock market is likely to reverse volatility after raising 16.7 points (+1.08%) on Tuesday (25 May), the pressure factor came from (1) The COVID-19 situation in the country that has not yet eased, and (2) MSCI will reduce the weight of Thai stocks, but there are still positive factors from the increase in crude oil prices.

AWS recommended short-term speculation among stocks that benefit from the revised crude price, especially for energy stocks such as PTTEP, PTTGC,TOP, IRPC, IVL and SPRC, and the issuance of a loan of Bt500bn to reduce the impact of the COVID-19 situation on the overall economy.

For investment strategy, AWS continued to recommend Selective to focus on investing in stocks based on the recommended Core Investment with the portfolio of 50%.

 

Chicago Fed Chair showed confidence that an increase in inflation in recent times will not cause a change in relaxation of the monetary policy as the vice president of the Fed that estimates that the recovery of the overall U.S. economy will reduce the impact of inflation that increases.

However, important economic numbers still need to be monitored later this week are (1) the 1Q21 GDP figure (the second estimate) for the U.S. today (27 May) and (2) the personal consumption price index (PCE) tomorrow (28 May ) which the PCE index is the Fed’s priority gauge of inflation.

 

Core Investment

1) Thai Baht depreciation (Trading 1 month) – CPF, TU, KCE and HANA

2) Stocks expected good performance in 2Q21 (Trading 1-2 months) – BCH, CHG, HMPRO, GPSC, BPP, PTTGC, IVL, PTTEP, PTG, SONIC, KWM, ORI, SPALI, KKP, KBANK and MTC

3) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

4) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB