Trinity Securities expected the SET Index to move between 1,480 and 1,500 points this week, emphasizing that the extension of the partial lockdown for at least another two weeks and to an additional 16 provinces will have a significant impact on Thailand’s GDP and listed companies’ earnings. Additionally, Trinity warned that private investor liquidity is dwindling and the global product sector is entering a recessionary phase. As a result, Trinity has highlighted the top seven stock sectors for investing.
Trinity Securities’ analyst recommends “HOLD” for portfolios that have accumulated equities during the Index’s downturn below 1,550 points. While new investors may have to watch for the stock index to fall to the support level of the 1,480-1,500 point. This is because the stock is trading at a low valuation level, with a forward PE of 15.5x, well below the 5-year average of 17.2x.
While foreign factors affecting investment in August include the manufacturing index of major economies, which has begun to deteriorate, led by China. Sino PMI growth has slowed for four consecutive months as a result of the resurgence of the Covid-19 pandemic and supply chain bottlenecks. So , some Thai exports in the supply chains of these manufacturing industries may face greater risks in the future. By contrast, food and agro-industry products typically regain demand as a result of the Work From Home policy.
Trinity has outlined seven investment themes for August: 1) Thailand exports food and agricultural products, as well as those that profit from the WFH campaign (PM, SUN and XO). 2) NCL and WICE are two logistics equities that continue to trade at a discount. 3) Beverage stocks with export-oriented products that have room to grow and have upside from new product launches (ICHI and SAPPE).
4) Packaging stocks that are still laggard yet have bright earnings prospects (SFLEX, SFT and UTP). 5) Stocks in the healthcare sector that gain indirectly from the ongoing Covid-19 (BDMS and CHG). 6) Pharmaceuticals and nutritional supplements that benefit from improved public awareness (IP and MEGA). 7) Upstream commodities, such as PTTEP, that are projected to benefit from increasing oil prices.