The SET Index yesterday (March 7) closed at 1,556.56 points, decreased 23.10 points or 1.46% with a trading value of 107 billion baht. The analyst from Asia Plus Securities (ASPS) said that concerns over domestic Covid-19 cases spiked had put the SET in panic and it was further exacerbated after the Transport Minister Saksayam tested positive for Covid-19 despite already having received the first dose of coronavirus vaccine. Therefore investors worry that the third wave of pandemic appears to spread more easily.
With regard to the vaccine confidence, ASPS stated that in case of Mr. Saksayam, he only got the first vaccine, which meant it gives him around 50% protection. So, ASPS saw that this issue would not have any significant impact on the confidence.
However, ASPS believed that it would have positive sentiment on insurance stocks like TQM Corporation Public Company Limited (TQM), while country reopening plays would be dull in the short-term before back on the rise when more Covid-19 vaccines arrive in Thailand, seeing the SET’s slowdown as an opportunity for investors to accumulate stocks.
Also, ASPS expected the index to move in the range of 1,550-1,530 points after the Songkran festival and could reach 1,600 points when additional doses of coronavirus vaccine deliver to Thailand from May onwards.
For the recommended stocks, ASPS suggested investing in stocks with bright earnings prospect forecast and rubber glove plays such as STGT (TP: ฿65), STA and STEC (TP: ฿18).
Still, recommending country reopening plays like BDMS (TP: ฿24), CPN (TP: ฿60), AAV (TP: ฿3.20) and SCC.