Maybank Kim Eng: Daily Strategy for Investors on March 11, 2019

Maybank Kim Eng Securities has made an analysis of the trading session of March 8, 2019, stating that SET moved in a tight range, driven by strong buying pressure on BTS stock. However, the global plays stocks were heavily sold led by PTTEP, PTTGC, TOP and IVL. The index closed at 1,630.1 points (-3.0 points) with a trading value of ฿34 billion, down from ฿38 billion the previous day.

Foreign investors continued to net sell Thai shares for the 10th  day by ฿524 million while institutions continued to net buy by ฿557 million. There were net short on SET50 index future by 9,363 contracts.

 

Big Issues
1) China’s CPI up 1.5% in February.
2) SET reported 2018 earnings of THB930b (-1.5% YoY).
3) India announces general election set on April 11.
4) GPSC adjusted purchasing price for GLOW at THB91.99 (from THB94.89/share).

 

Technical View
The SET index would move sideways downwards all day, even with a strong buying pressure on transport and conmat sectors. The strong selling pressure on the energy, ICT and petrochemical sectors has dominated and resulting in a weak rebound at the key support at the neckline triple top at around 1630 points area. It then moved sideways at the support area.
So we believe the index may continue moving down and the next supports are 1615 points and 1600 points. If it slips through 1625 points intraday, Maybank recommends to stop loss or if rebounds, it is recommended to sell stocks to reduce portfolio.

 

Investment Strategy
1) Investors with stocks, if rebounds, take profit at resistance for cyclical trading. And if dips below 1625 points, take profit or stop loss.
2) Without stocks, if weakens but holds above 1625-1630 points, speculative buy stocks for a brief rebound trading. But if dips below 1625 points, stop speculating.

 

Maybank sets a support line at 1615 points and 1625 points, while setting a resistance line at  1640 points and 1660 points.

 

Keep an eye on
1) Trump to meet Xi Jinping on trade war talks on March 27.
2) Progress on high speed trains linking three airports bidding on March 13.
3) Thai election on March 24.