Country Group Recomm. “Accumulate” 18 Domestic Plays with Possible Recovery in 2H21

Country Group Securities (CGS) foresaw the SET Index this week (May 10-14) to move in the range of 1,575-1,600 points in the belief that the market would pay less attention to the Covid-19 outbreak situation and turn to positive factors instead. Last week, despite more than 2,000 covid cases having been reported each day, the index did not respond negatively.  

 

There was a report last week that American biopharmaceutical company Pfizar planned to deliver 10-15 million Covid vaccine doses in 3Q21. As a result, SET on May 7 closed at 1,585.03 points, increasing 0.83%. The analyst stated that apart from Pfizer’s Covid-19 vaccine issue, positive factors from domestic stocks also buoyed the stock market.

 

However, if the number of daily coronavirus cases reaches another new high during this week, a new round of market corrections could occur. 

 

CNS believed that the 1Q21 results announcement of listed companies will not have any significant impact on SET as most of stocks to report the operating results are Domestic Play. 

 

Global factors are still positive to Thai market even though the U.S. nonfarm unemployment rate in April had not met expected. 

 

For investment strategy, if Domestic Play such as tourism (AOT, AWC, CENTEL and MINT), retail (BJC, CRC, CPALL, HMPRO, ILM and TACC), cinema (MAJOR), and shopping mall (CPN) plunge this week, which could be because of disappointed 1Q results or the number of daily Covid cases, CNS recommended mid-term accumulating in hopes for recovery in the second half of this year.     

 

For near-term investment, recommending Global Play, in particular petro chem (IVL, PTTGC and SCC), oil (PTTEP) and shipping (PSL and TTA).

 

Top picks are PTTEP (TP: 131 baht) and ILM (TP: 18 baht)