Daily Strategy: FSS Looks Ahead to Reopening Theme and Invest in Laggard Stocks

Finansia Syrus Securities looked ahead to the reopening theme next week, recommending laggard stocks for investment.

Stocks in Asia traded in a mixed session on Friday as investors digested slower growth in the Chinese service sector in August that came to a contraction and lower than expected. Meanwhile, the U.S. will announce its non-farm payroll for August later tonight.


As of 10:05 local time in Thailand on August 3, 2021, Nikkei rose 0.85%, Shanghai Composite dipped 0.03%, Hang Seng Index slipped 0.43%, Australian ASX 200 increased 0.44% and IDX Composite dropped 0.23%.

Yesterday, SET Index closed at 1,647.75 points, increased 13.27 points or 0.81% with a trading value of 101 billion baht.


The Caixin/Markit services Purchasing Managers’ Index in August came in at 46.7, against July’s reading of 54.9 and an expectation of 54.0. Earlier this week, the official non-manufacturing PMI for August also showed contraction in the sector for the first time since early 2020, coming in at 47.5.


Mr. Kantara Ladawan na Ayutthaya, executive director of Finansia Syrus Securities (FSS), through “Kaohoon Jor Talad Program” on August 3, 2021, stated that the Thai stock market can still move forward as the rally in recent days was largely distorted by a gain in Delta Electronics (Thailand), thus, leaving a room for upside in the market while the relaxation in lockdown restrictions will buoy the market.

Mr. Ladawan advised investors to monitor the Covid-19 situation after the easing lockdown to see whether the infection rate will increase or not, while seeing the political issues would not impact the market.

Looking ahead into next week, Mr. Ladawan expected the market to move in response to the reopening theme, giving a movement range of 1,615-1,680 points and focusing on the banking, refinery, finance, retail and tourism sectors.

As for the hospital stocks, Mr. Ladawan stated that investors had been speculating on this sector since Covid-19 outbreak and the easing situation and lower infection could impact the sector. Thus, the analyst recommended switching to stocks that are still laggard.

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