SET Edges Higher despite Plummet in Regional Markets as Covid Cases Rise at Slower Rate

SET Index continued to edge higher on Tuesday despite a plummet in regional markets as Covid-19 cases in Thailand rose at a slower rate.

Thai stocks market edged higher despite a plummet in the regional market as domestic Covid-19 spread rose at a slower rate, while progress has been made on the provision of additional vaccines.

 

As of 10:28 local time in Thailand on Tuesday, SET Index rose 7.43 points or 0.48% with a trading value of 18.4 billion baht.

Meanwhile, Nikkei fell 0.27%, SSEC dipped 0.46%, HSI slipped 0.15%, ASX 200 dropped 0.38% and Kospi declined 0.30%.

 

Asia Wealth Securities (AWS) expected the SET today to move in a range of 1,540-1,570 points in a sideway manner while continuing to monitor the COVID-19 situation closely in the country, despite the positive sentiment, the number of infections started to rise at a slower rate. While progress has been made on the provision of additional vaccines, the SET yesterday (26 Apr) is better than the region.

For investment overview, AWS will also focus on recommended Core Investment stocks, while those in the hospitals sector are currently on the move to benefit from vaccination and income from screening. Even though AWS had the opportunity to raise its earnings estimates, the upside in terms of valuation is limited.

Therefore, AWS started to introduce gradually to sell some parts. For investment strategy, AWS maintained holding cash of more than 50% to reduce market volatility.

 

Following the Federal Reserve’s Monetary Policy Conference on 27-28 April. It will maintain short-term interest rates at 0%-0.25% and continue quantitative easing (QE), with at least USD120bn in bond purchases per month. This is still in line with the Fed’s original view from the release of the minutes of the previous meeting (16-17 March), however, data from Bloomberg revealed a survey from economists (Sample group are 49 economists with the preparation between 16-21 April). The Fed will start QE Tapering earlier than previously expected. (Previously expected QE Tapering to happen in 2022), partly due to the strong recovery of the U.S. economy. More than 45% believe the Fed will do QE Tapering during 4Q21, the remaining believe occurring during 1Q22, and only 14% believe the Fed will do QE Tapering during 3Q21.

 

Core Investment

1) For foreigners to hold a property in the country (Short-term trading 2 weeks) – NOBLE, ORI 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) Global Play (Trading within 1-2 weeks) – PTTGC, PTTEP, SPRC, CPF, KCE, HANA and SAT

4) Stocks which obtained benefit from EV CAR Thailand 2035 (Short-term trading 1-2 months) – BPP, GPSC, BCPG, EA, NEX, CHO and KCE

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

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

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