Analyst Expects SET to Move Sideways, Pressuring by Rising Covid Cases and Low Oil Prices

Stocks in Asia bounced back on Thursday after a sharp plummet in yesterday’s sessions due to an increase in global coronavirus cases, especially in India with more than 300,000 new cases a day in the past 7 days.

 

As of 9:21 local time in Thailand on Thursday, April 22, 2021, Nikkei rose 1.76%, SSEC slipped 0.23%, HSI increased 0.08%, ASX 200 gained 0.23% and Kospi hiked 0.41%.

Yesterday, SET Index closed at 1,580.01 points, decreased 0.03 points with a trading value of 80.5 billion baht.

 

Asia Wealth Securities (AWS) expected the SET today to move in a range of 1,565-1,590 points with a negative reaction to the bad COVID-19 situation, as well as the decline in crude oil prices (Stocks benefiting from lower oil prices, including TASCO, EPG, GPSC, BGRIM, GULF, CPALL and BJC) will be pressuring the overall investment today. Next week, investors need to follow the Federal Reserve’s Monetary Policy Meeting on 27-28 Apr to look for new positive signals to support investment.

Earlier, the Fed released the minutes of its latest regular meeting (16-17 Mar), the report said the Fed will continue its monetary easing until the U.S. economy will recover sustainably.

For investment strategy, we maintain holding cash of more than 50% to reduce market volatility. While investing still focuses on stocks with unique positive factors according to the Core Investment.

 

Core Investment

1) Stocks which benefit from waiver for foreign property holding in the country (Short term trading 2 weeks) NOBLE, ORI, LH and SC

2) Stocks which benefit from the COVID 19 situation (Short term trading 2 weeks) BCH, BDMS, COM7, TQM, III, STA and STGT

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

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

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