Daily Strategy: ASL Expects SET Index at 1,700 by End-October over Reopening, 3Q Earnings
ASL Securities' Suchet Suktae expected SET Index at 1,700 by the end of October, supported by reopening and 3Q earnings season.
Stocks in Asia traded lower on Tuesday after China reported slower growth in factory activity in August as PMI reading came in at 50.1, compared to a reading of 50.4 in July.
As of 9:45 local time in Thailand on August 31, 2021, Nikkei fell 0.22%, Shanghai Composite dropped 0.33%, Hang Seng Index plunged 1.30%, ASX 200 rose 0.35%, and IDX Composite slipped 0.20%.
Yesterday, SET Index closed at 1,633.77 points, increased 22.57 points or 1.40% with a trading value of 116 billion baht.
Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities Co.,Ltd., stated through “Kaohoon JorTalad Program” on August 31, 2021, that the market is focusing on the domestic reopening tomorrow, while the QE tapering (expected in November) and slower rate hike will be the catalysts to drive the Thai stock market in September.
Mr. Suktae advised investors to focus on the reopening stocks such as AOT, Hotel stocks (MINT from reopening in Europe), CENTEL, U and CPN. The analyst gave a support level for today’s session at 1,620 points and a resistance level at 1,655-1,660 points, and stated that the market will have a solid stance if it is able to close above the resistance level.
The Thai index should pick up the pace in October to reflect the 3Q earnings announcement and should reach 1,700 by the end of October.
In addition, Mr. Suktae recommended four of ASL’s top picks, which are TACC (sup. 7.20-7.30 // res.8.00), YGG (sup. 20.05 // res. 22.00), SYNEX (sup. 23.50 // res. 27.50-28.00) and TOA (sup. 33 // res. 36.50), and also recommended sea freight and logistic stocks upon rising BDI and baht depreciation (III, WICE, LEO and NCL.)