Asia Wealth Securities (AWS) expected the SET this week (5-9 Apr) to move in the range of 1,576-1,625 points. The market remains volatile in the sideway. Last week, the SET index rose 1.36% since foreign investors returned to net buy positions. This is reflected by the baht’s depreciation of 0.32% last week.
Meanwhile, the 10-year U.S. Treasury bond yield began to fall below 1.7% after the U.S. announced a stimulus package (Infrastructure investment) amount of USD2tn making the valuation of the stock begin to limit.
While the SET index has only 6 trading days during 2 weeks, AWS expected to trade volumes to be slim. The security company adjusted its investment strategy over the next 2 weeks by increasing its cash equity to 50%, speculation continues to focus short-term on cyclical, banking and retail sectors, including stocks with particular positive factors, especially Core Investment in the theme (1) stocks benefiting from the baht depreciation and (2) stocks that benefit from the opening of the country.
Issues to watch this week (1) Short-Term Energy Outlook report by EIA on 6 Apr (2) Meeting between Japanese Prime Minister Shihidetsuka and Biden on 9 Apr which is expected to discuss issues on China and North Korea (3) Global epidemic situation after long holiday from Europe and Asia, including Thailand with long holiday next week on Songkran Day and (4) The March meeting of the U.S. Federal Reserve (Fed) is scheduled for release on 7 Apr, U.S. time (In the morning of 8 Apr Thai time) to find signals about the direction of the Fed’s interest rate after the Fed committee resolved to maintain short-term interest rates at 0.00-0.25% in the meeting on 16-17 Mar.
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 measure (Trading within 1-2 months) – BPP, GPSC, BCPG and EA.
3) Stocks which obtained the benefit reopen country (Trading within 6-12 months) – AOT, AAV, BA, ERW, M, CRC, CPALL, CENTEL, MINT, BH, BDMS, SPA, MBK, NOBLE, WHA and AMATA
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