SET Rebounds 2pts amid Downside Risks on Surging Coronavirus Cases

The Stock Exchange of Thailand (SET) Index rose 2.01 points or 0.13% to 1,543.13 points with a trading value of 27 billion baht as of 10:35 local time in Thailand on April 16, 2021. The index bounced back from a loss of 25 points in the previous session.

 

Asia Wealth Securities (AWS) expected the SET today to remain volatile and move in the range 1,530-1,555 points. AWS believed the downside is limited despite the COVID-19 situation in the country has not resolved, which reflected in the SET of 25.22 points decline (-1.6%) on Monday (12 April).

 

Positive factors supporting the market are 10-year U.S. bond yield continued to decline at the level of 1.6%, including rising crude prices which is a factor supporting defensive stocks and energy stocks (PTT, PTTEP, PTTGC and TOP) and power generating business (BPP, EA and GPSC). However, AWS continued to recommend accumulating after the SET has dropped near our predicted support level of 1,540 points and invest only in a short-term speculative manner and maintain a cash holding ratio of more than 50% in order to reduce market volatility.

 

The COVID-19 situation in the country, the average number of infected people this week (10-15 April) was 1,097 cases per day, while the previous week’s average (3-9 April) was at 272 cases per day. AWS looked at it as a limiting factor in the market recovery, especially concerns that the number of infected cases will continue to rise during the holiday season continuing to next week.

 

Core Investment

1) Stocks which obtained the benefit from Thai Baht depreciation (Trading within 3 6 months) HANA, KCE, TU, ASIAN, GFPT, CPF, STA, STGT, SAT, EPG, SMPC and MEGA

2) Stocks which obtained benefit from EV CAR Thailand 2035 (Trading within 1 2 months) BPP, GPSC, BCPG and EA

3) Dividend Play (Middle term trading 6 12 months) SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

4) Long term accumulative stocks (DCA) (Long term trading over 1 year) AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB