CNS Expects a Short Surge from Easing Lockdown, Pointing an Opportunity for Profit-Taking

Mr. Koraphat Vorachet, Analyst of Capital Nomura Securities has stated in “Kaohoon Jor Talad” program on April 27, 2020, saying that the Thai stock market is expected to edge higher, but within the support and resistance level between 1,249-1,240 and 1,280-1,285.

 

Mr. Koraphat asserted that the U.S. $480 billion package and the BOJ QE catalysted Asia markets. As for Thailand, Mr. Koraphat recommended to monitor the easing of partial lockdown measures this week.

Retail stocks already priced in the positive sentiment from the expectation of easing the lockdown for the past few weeks, thus, Mr. Koraphat recommended “Buy on Weakness” for stocks with direct effect on the easing lockdown, warning that upon the easing lockdown, these stocks could have faced “sell the fact”.

As for a defensive stock in power generation stocks, Mr. Koraphat recommended EGCO which has a cheap valuation, giving a target price at ฿310.00/share. Meanwhile, CHG is expected to have a limited impact from the virus outbreak, giving a target price at ฿2.68.00/share.

In addition, Mr. Koraphat viewed that the market would have positive movement, coupled with a correction upon the easing lockdown and could be the opportunity for profit-taking.