Analyst Expects Stable Movement in SET Index as Investors Wait for MPC Meeting

As of 9:13 local time in Thailand on June 22, 2021, Nikkei rose 2.44%, SSEC gained 0.57%, HSI slipped 0.18%, ASX 200 increased 1.35% and Kospi advanced 0.52%.

Yesterday, SET Index closed at 1,601.13 points, decreased 11.85 points or 0.73% with a trading value of 83 billion baht. The analyst stated that the Thai stock market and Asian stock markets moved in the similar direction, which was downward, as concerns over the U.S. Fed to shift its policy rate faster-than-expected still lingered.

 

Asia Wealth Securities (AWS) expected the SET today to rest in the range of 1,590-1,615 points after yesterday (21 Jun) dropped by 11.85 points (-0.73%) in a similar trend as stock markets in the region.

However, the SET still has a chance to fluctuate from continued pressure after the FOMC meeting last week, while the stance of central bank meetings around the world this week weigh in the same direction as the Fed, including the Thai MPC meeting (23 Jun) that it is expected to review Thailand’s GDP forecast in 2021.

AWS’ investment strategy continues to focus on stocks that have positive factors from the vaccination process, re-opening stocks at Laggard’s share price, emphasizing stocks in the real estate development sector, industrial estate group and power generation stocks (PDP2022).

AWS chose AMATA, WHA, SPALI, ORI, NOBLE, GPSC, GULF, EGCO and BPP, while cyclical stocks are in the middle of an early recovery following the economic cycle. This makes AWS weigh only speculation in the oil play group by choosing PTTEP as top picks.

 

WTI crude oil contract for July delivery closed at USD73.66 per barrel, up USD2.02 (+2.8%) on lower supply concerns after the U.S. oil production limited increase and negotiations on the 2015 nuclear deal between the U.S. and Iran have not progressed, including that Mr. Ibrahim Raisi, President of the Supreme Court won the presidential election of Iran last Saturday which Mr. Raisi is the extremist leader of Iran that the U.S. government has ordered sanctions in the days of President Donald Trump by the past Mr. Raisi called for the U.S. to remove all unfair sanctions against Iran.

This further weakens the weight of the 2015 nuclear deal negotiations. The aforementioned issues support Oil Play (PTT, PTTEP, SPRC and BCP).

 

Core Investment

1) Laggard Play (Trading within 1-2 months) – ADVANC, CPF, KBANK, BBL, MTC, EGCO, SPALI, LH, WHA, BDMS, BEM and BJC

2) Countdown 120 Days Re-Opening (Trading within 3 months) – BAM, BA, BEM, BDMS, BJC, BTS, CPALL, ERW, CENTEL, CRC, SPA, HMPRO, WHA. AU and M.

3) Stocks expected good performance in 2Q21 (Trading 1-3 months) – BCH, CHG, HMPRO, GPSC, BPP, PTTGC, IVL, PTTEP, PTG, SONIC, KWM, ORI, SPALI, KKP, KBANK and MTC

4) Dividend Play (Middle-term trading 6-12 months) – LH, QH, ORI, SPALI, ADVANC, KKP, TISCO, STA, STGT, TMT, TVO and STI

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