Globlex Secs. Selects 4 Best Defensive Stocks for Sideways Market

Globlex Securities (GBS) forecasts that Thailand’s stock market will continue to trend sideway down as the number of Covid-19 infections keeps rising and, most recently, the Office of the National Economic and Social Development Council reduced its economic growth forecast for 2021 to 0.7-1.2%, coupled with ongoing mass protests against the government. The SET is predicted to move between 1,480 and 1,550 points, recommending defensive stocks with strong fundamentals and a good dividend yield, such as ADVANC, TTW, EASTW, and BGRIM. 

August factors to monitor include the following: 1) parliament’s deliberation of the fiscal year 2022 budget bill, 2) Thailand’s second quarter GDP, 3) Eurozone inflation in July, 4) US July trading figures, and 5) the Fed meeting at the end of August.

Thailand’s market would continue to be impacted by the Covid-19 outbreak crisis and political crackdown. The government announced Monday (August 16) that it will extend the semi-lockdowns until the end of this month, with the plan to expand coronavirus testing using Antigen Test Kit (ATK) in 29 dark-red provinces.

As a result, GBS recommends investing in Defensive Stocks such as ADVANC, TTW, EASTW, and BGRIM that are listed in the SET50 and sSET and are suitable for long-term investment due to their strong fundamentals and growing trend. Additionally, they pay a good dividend and have a lower P/E ratio than peers in the same industry.