Analyst Expects SET Index to Pullback, Tormenting by Covid-19 Situation

Asia Wealth Securities expected SET Index to decline as risk factors remain concerned over the COVID-19 situation.

Asia Wealth Securities (AWS) expected the SET today to move within a range of 1,545-1,570 points with a chance to decline. Risk factors remain concerned over the COVID-19 situation in the country and the global spread of the Delta virus, causing the global economic recovery to be uncertain, including the forecast for crude oil demand in the period 2H21-2022, while OPEC+ has just concluded on the production increase. (affecting short-term in oil play stocks).

Current investment overview began to reflect the risk-off situation after the price of risky assets decreased. For investment strategy, AWS also recommended stocks with positive sentiments on a selective basis, stocks benefiting from a weak baht, logistic and WFH stocks. This week, follow BoJ meeting (21 Jul) and ECB meeting (22 Jul) on outlook on the overall economy and the continued use of the accommodative monetary policy.


Core Investment

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

2) WFH stocks (Trading within 1 month) ADVANC, TRUE TPAC, SCGP, JAS, ITEL, INSET, NETBAY, YGG and AS.

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

4) Stocks obtained benefit from export (Trading 1-3 months) APURE, SONIC, JWD, WICE and NYT.

5) 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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