Daily Strategy for Investors on January 25, 2021

Krungsri Securities (KSS) released an analysis for the trading session on January 25, 2021 indicating the essential events in the stock market as follows: 

 

Market Recap

The SET Index ended Friday down 16 points (-1%) at 1,498 in Bt96b turnover. The market was pressured by weaker-than-expected EU Manufacturing and Services PMI data, pressure from selling in stock with small free float, tight SET valuation, and slowing inflows.

 

Market Outlook

The SET is expected to head further south today and test 1,485-1,490 support levels amid reports the US Senate has opposed the fresh stimulus measures. Softer oil prices following the larger-than-expected rise in US crude inventory and slowing fund inflows could also dampen sentiment.

SET may consolidate further to test 1,460support amid still demanding valuation and the absence of fresh catalysts. The market is currently trading at a SD of historical PE multiple compared to the norm of +/-2SD. The index could drift down to test +2SD or 1,460.

KSS expected the Fed to hold rate at 0.25% and QE volume at US$120b/month at the next meeting: The US FOMC will meet on Jan 26-27outcome due early Jan  Bangkok time.

 

Thai exports book positive growth for the first time in 9 months: Thai exports swung to +4.71 YoY in December vs -3.65 yoy in November, marking the strongest growth in 22 months as economies at its key trading partners recover. The latest data supports the positive outlook for the Thai economy this year.

 

Investment Strategy Selective Buy

PTTGC, TOP, IVL, EPG, VNT, SCGP, CBG, ROJNA, TVO, STGT, CPF, RCL, PSL, SYNEX, COM7, XO, WICE, JMT, MTC, SAWAD, KCE: Robust 4Q20 earnings growth prospects.

 

ADVANC, INTUCH, AP, SIRI, WHAUP: Dividend plays.