SET Index Drops 5pts as Covid Lockdown Continues to Put Pressure on the Market

As of 10:13 local time in Thailand, the Thai stock market fell 5.36 points or 0.34% to 1,565.63 points with a trading value of 10.36 billion baht.

Asia Wealth Securities (AWS) expects the SET today to move in a range of 1,555-1,580 points. The SET has risen against the TIP stocks and Outperform compared to regional markets, partly due to the response to the remedial measures for the impact of the lockdown and curfew orders in 10 provinces in the dark red area.  

The impact of the lockdown and curfew measures has more impact on the overall economy, even though the government has measures to heal because 10 provinces in the dark red area account for 50% of the country’s GDP and concerns about the Fed to speed up interest rate hikes after the U.S. reported higher CPI figures, both MoM and YoY and higher than Market Consensus expected. 

Markets will continue to follow the statement from Fed Chairman Jerome Powell, with a semi-annual statement about the U.S. monetary policy and economic conditions to the Senate Banking Committee (14 Jul) and to the House Financial Services Committee (15 Jul).  

Thus, AWS recommends stocks that benefit from Thai baht depreciation, logistic stocks and stocks in the hospital group.

Core Investment

Hospitals stocks – TM, SMD, BCH, BDMS and CHG

Stocks which obtained benefit from Thai baht depreciation – ASIAN, TU, HANA, KCE, SAT, AH, MEGA NER, EPG, CBG and SMPC

Stocks obtained benefit from export – SONIC, JWD and NYT

Long term accumulative stocks (DCA) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB