Daily Strategy: ASL Expects Reopening to Drive SET Index amid Negative Sentiment in Asia

Major stock markets in Asia traded lower on Tuesday, led by Japan and Hong Kong, following an overnight loss in Wall Street amid signs of slower growth in the economy.

 

On October 12, 2021, Thailand’s SET Index opened at 1,644.02 points, increased 10.58 points or 0.65%.

As of 10:15 local time in Thailand, Nikkei dropped 0.93%, Shanghai Composite fell 0.92%, Hang Seng Index plunged 0.97% and Australia ASX200 dipped 0.44%. Meanwhile, Indonesia IDX Composite rose 0.59%.

 

Last night, Dow Jones closed 0.72% lower, S&P 500 fell 0.69% and Nasdaq decreased 0.64%, while VIX Index rose 6.55% to 20.00 points. Concern over slower economic growth started to mount after the U.S. job report missed expectations in September, while Goldman Sachs cut U.S. GDP 2021-22.

 

Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities Co.,Ltd., through “Kaohoon Jor Talad Program” on October 12, 2021, stated that the announcement of reopening on November 1 should be a positive factor for Thailand, but the plummet in Asia markets is still concerning as well. The analyst gave a support level at 1,630 points and a resistance level at 1,650 points. As for the investment theme, Mr. Suktae recommended three themes as follows;

1) Global energy – following higher coal price

2) Reopening

2.1) Transportation Reopening – AOT, AAV, BA, BTS, BEM,

2.2) Hotel Reopening – CENTEL, ERW, AWC

2.3) Commerce Reopening – M, ZEN, OSP, CBG

2.4) Entertainment Reopening – MAJOR, PLANB, VGI, MONO

3) Bank Earnings – BBL, KBANK, SCB, TISCO