Daily Strategy: Finansia Looks Forward to Oct. 1 Reopening, Expecting Better Outlook

Stocks in Asia traded in a mixed session on Friday after the U.S. reported an unexpected higher retail sales of 0.7%, while jobless claims last week rose to 332,000.

 

Thailand’s SET Index opened at 1,634.68 points, increased 2.98 points or 0.18%

As of 10:05 local time in Thailand on September 17, 2021, Nikkei rose 0.53%, Shanghai Composite fell 0.55%, Hang Seng Index gained 0.22%, Australia’s ASX 200 dropped 0.52% and Indonesia’s IDX Composite increased 0.16%.

 

U.S. weekly jobless claims ending September 11, 2021, increased to 332,000, slightly higher than the Dow Jones estimate of 320,000.

Meanwhile, The Census Bureau reported that August’s retail sales increased 0.7%, coming in as a surprise against the estimate of a 0.8% decline. However, the initial estimate for July was revised down in terms of month-over-month from a gain of 0.5% to a decline of 1.8%.

 

Mr. Kantara Ladawan na Ayutthaya, executive director of Finansia Syrus Securities (FSS), through “Kaohoon Jor Talad Program” on September 17, 2021, stated that

Investors should keep a close eye on Covid-19 situations; new daily cases, deaths and vaccinations, that would lead to a reopening later. An uptick in daily Covid-19 cases is a negative sentiment to short-term and trading investors, but in the long term, it is evident that the situation will get better as Thailand is expecting more vaccines in upcoming months.

Mr. Ladawan expected SET Index next week to move in a range between 1,620-1,640 points. The analyst pointed out that hospitality and tourism sectors should be one of the first to benefit from the reopening, while the banking sector will recover afterward, followed by the energy sector.

As for the opening schedule on October 1, 2021, Mr. Ladawan expected the government to maintain its plan to reopen, otherwise, the delay would post a negative sentiment to the market.