Asia Stocks Trade Mixed, Analyst Expects SET to Continue Winning Streak over Oil Surges

Stocks in Asia were mixed on Friday after making an almost positive run this week. Chinese stocks edged higher on the first day returning from a long holiday since October 1st.

 

As of 9:32 local time in Thailand (GMT+7), Nikkei slipped 0.11%, SSEC jumped 1.60%, HSI rose 0.06%, ASX 200 dropped 0.03% and KOSPI increased 0.21%.

Last night, oil prices rose 3% to the highest level in nearly five weeks in response to a potential output shutdown ahead of a storm in the U.S. Gulf of Mexico. Brent Crude increased 2% to $42.85 barrel, while WTI jumped 3.1% to $41.19 per barrel.

Today, China announced that the Caixin/Markit services Purchasing Managers’ Index for September came in at 54.8, which indicated a significant expansion for the reading above 50.

 

Asia Wealth Securities (AWS) expected SET today to maintain a positive sentiment from the expectation of economic stimulus measures, including a recovery in crude oil prices from hurricane season impact (recommend only speculation).

However, we believe that the SET Index remains vulnerable from economic uncertainty from the latest MPC meeting that remains concerned about purchasing power in the long run after the labor market has been greatly affected, including domestic political factors (student meeting next week (14 Oct).

AWS’ investment strategy remains the same by focusing on holding more than 50% of cash, the security company recommended investing in stocks with unique positive factors (Short-term speculation) includes (1) increase in oil prices (PTT, PTTEP, TOP and PTTGC) and (2) stocks that benefit from government stimulus measures, such as TU, JMART, COM7, CBG and OSP, as well as accumulating for long-term investment in Defensive Stock (Dividend Stock) and DCA Stocks based on the Theme Investment.