Daily Strategy for Investors on August 24, 2020

Krungsri Securities (KSS) released an analysis for the trading session on August 24, 2020, indicating the essential events in the stock market as follows:

 

Market Recap

The SET Index gained 2.5 points (+0.2%) to close at 1,299 in thin turnover worth Bt42b, on optimism over fresh US-China trade talk and progress in COVID-19 vaccine search.

 

Market Outlook

KSS is neutral towards the market today, expecting the SET Index to hover at 1,290 – 1,310 in the absence of a fresh catalyst. Investors are expected to stay side-lined pending the Fed’s speech on August 27 for clues on the direction of the economy and monetary policy. In Thailand, rising political temperature could dampen sentiment.

 

Investment Strategy: Selective Buy

– CPF, GFPT, TU, KCE, HANA, DELTA: To benefit from softer baht tone

– Domestic & Defensive plays: ADVANC INTUCH HMPRO GLOBAL DOHOME COM7 CRCJMT CHG

 

Today’s Highlights

– EU PMI slowed but US PMI still solid: EU Manufacturing and Services PMI index fell to a 2-month low of 51.6 , while the US index surged to a 5-month high of 54.7 from 50.3 in July. Robust production data pushed up the DJIA by 191 points on Friday.

– FTSE Rebalance – adding CRC BGRIM BBL-F to Large Cap index effective Sep 1 8 : CBG and TOP will be added to the Mid Cap index ( following removal of TOP from Large Cap index), while MEGA, IMPACT and JMP will be added to the Small Cap index.

– Eyes on Thai July trade data for signs the economy has bottomed out: Consensus estimate suggests July exports would shrink 17.8% vs -23.2% in June. A positive surprise could send positive signals about the Thai economy as exports account for 50% of GDP.