Daily Strategy: Capital Nomura Recommends ICT, Power Plant, and Hospital Stocks

Stocks in Asia traded lower on Thursday after the South Korean central bank hiked its policy rates by 25bps to 0.75%, being the first major economy in Asia to hike rates in the Covid-19 pandemic era.

 

As of 9:31 local time in Thailand on August 26, 2021, Nikkei fell 0.09%, SSEC dropped 0.51%, HSI slipped 0.36%, ASX 200 decreased 0.49% and IDX dipped 0.48%.

Yesterday, the SET Index closed at 1,600.49 points, increased 13.51 points or 0.85% with a trading value of 92.9 billion baht.

 

Koraphat Vorachet, Capital Nomura Securities’ strategist, stated through “Kaohoon Jor Talad TV Program” on August 26 that the Thai stock market was able to close higher than the resistance level of 1,600 points from all previous positive sentiment, while investors are focusing on the Fed’s symposium in Jackson Hole later this week on tapering assets purchase, which could cause the market to fluctuate in sideways trends in today’s session.

The analyst gave a support level at 1,583 points and a resistance level at 1,607-1,613 points, while saying that the recent purchasing pressure from foreign investors this week was a buyback from the previous outflow.

In addition, Mr. Vorachet expected ICT, power plant, and hospital stocks to continue outperforming the market in mid-term to year’s end. Stocks related to exports might have yet to complete its upcycle, but investors would need to set a support level to accumulate. Lastly, the reopening stocks would fluctuate, recommending “Buy on Weakness”. Stocks to focus are; GPSC, GULF, BCPG, ADVANC, INTUCH, BH and BDMS.