CNS’ “Koraphat” Expects SET to Swing Sideways as the Market Tends to Slowdown in May

Mr. Koraphat Vorachet, Analyst of Capital Nomura Securities has stated in “Kaohoon Jor Talad” program on May 7, 2020, expecting that the SET Index to swing sideways with a support level at 1,267-1,250 points and a resistance level at 1,289 points, mainly due to external factors, especially in the U.S. regarding the trade war with China.

 

Moreover, Mr. Koraphat asserted that the current movement in the market reflected investors’ sentiment on 1Q20 earnings, which would be needed to keep monitoring for defensive strategy in this situation.

In addition, Mr. Koraphat emphasized on a defensive-play strategy, recommending food-related stocks such as CPF (TP ฿35) due to the overall production and agriculture in Thailand during the lockdown has better productions than other regional markets. Meanwhile, BCH (TP ฿16.50) would receive more earnings in 2Q from higher Social Securities Office patients and COVID-19 check-up.

Lastly, Mr. Koraphat expected the movement in May to be clouded as the US dollars usually strengthen while the overall economy in May till the beginning of June usually slowdown, coupled with weak earnings, which caused risk assets during the period to have negative views in investor perspective, especially foreign investors.