Globlex Sec. Recommends Reopening Plays as Gov’t Shorten Curfew Hours

Globlex Securities (GBS) forecasts a sideways trend in the Thai market this week due to increased worldwide research and development of coronavirus vaccines. For example, a COVID-19 vaccine developed by Chinese Sichuan Clover was recently found to be 79% effective against the delta variant.

Another catalyst for the SET Index is a new round of COVID stimulus packages. The House of Representatives is expected to vote on a $1 trillion infrastructure spending bill this Thursday. This would lead to some window dressing by the end of 3Q21.

It will be also fueled by speculation in banking and telecommunications stocks, and the rise in the price of WTI crude oil has a positive impact on energy stocks. As a result, GBS expects the index movement in the range of 1600-1660 points.

GBS advises investors to keep an eye on the flooding in several provinces, Thai central bank’s economic report at the BOT Symposium 2021, the eurozone’s September economic data, global weekly oil inventories and the OPEC+ meeting, Chinese PMI figures, and US housing records.

For the investment theme, GBS recommends stocks that benefit from lockdown easing; MAJOR, AU, ZEN, M and CPALL. The Centre for Covid-19 Situation Administration (CCSA) yesterday approved adjusting curfew hours to 22:00-04:00, extending opening hours for shopping centers and convenience stores until 21:00, and allowing 10 more businesses to reopen, including a spa, a cinema, and live music in a restaurant. The CCSA also reduced the quarantine duration to a minimum of 7 days, starting October 1, 2021.