SET Index Gains 7pts ATO, Analyst Recommends Stocks Benefiting from Weak Thai Baht

SET Index rose 7.42 points at the opening on July as the analyst recommended logistics, hospital and stocks benefited from weak Thai baht.

The Thai stock market opened 7.42 points or 0.48% higher to 1,557.26 points with a trading value of 1.59 billion baht on July 13, 2021.


Asia Wealth Securities (AWS) expected the SET today to move within a range of 1,530-1,565 points. Overall, the SET Index remains at risk of continued volatility due to the COVID-19 situation in the country, while the banking sector earnings announcement (starting 15 Jul) is not bright.

AWS’ analysts expected 2Q21 net profits of the 8 banks under their study to decline 7.2% QoQ. (Excluding special profit, 2Q21 normal profit, down 22.5%QoQ). Shares in the oil-play group that are affected by the current COVID-19 situation, depressing the overall economy and demand for crude oil, including a slowdown in investment before the Fed chairman expressed his view on the economy, inflation, U.S. interest rate direction, including the impact of the COVID-19 epidemic on the U.S. economy to Congress which is scheduled to deliver a statement to the Senate Banking Committee on 14 July and to the House Financial Services Committee on 15 Jul.

AWS recommended stocks that have received positive sentiment on the baht depreciation, stocks in the logistics group and stocks in the hospital group.


Core Investment

1) Hospitals stocks (Trading within 1 month) – SMD, BCH, BDMS and CHG

2) Stocks which obtained benefit from Thai baht depreciation (Trading within 1-3 months)- ASIAN, TU, HANA, KCE, SAT, AH, MEGA, NER, EPG, CBG and SMPC.

3) Stocks obtained benefit from export – SONIC, JWD and NYT.

4) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS,

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