Stocks in Asia traded mostly lower with Hang Seng Index leading the plummet by nearly 2, following the report of Beijing to break up Ant Group’s Alipay and create a separate loans app in a joint venture with the Chinese government.
Thailand’s SET Index opened at 1,637.12 points, increased 1.77 points or 0.11%.
As of 10:03 local time in Thailand, Nikkei slipped 0.29%, Shanghai Composite increased 0.05%, Hang Seng Index fell 1.77%, ASX 200 rose 0.33% and IDX Composite dropped 0.45%.
Financial Times reported last night that the Chinese government wants to break up Alipay, a payment platform run by Jack Ma’s Any Group, by splitting Ant’s back end of its two lending businesses, Huabei and Jiebei, into two new apps as a joint venture between Ant and the Chinese government.
The share price of Alibaba Group Holding Limited fell 3.81% in the morning session on Monday, while Tencent Holdings Ltd. also dropped 2.78%.
Mr. Ekpawin Suntarapichard, investment strategists of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on September 13, 2021, stated that the Thai stock market could see a recovery this week after a slow down in the previous week with a positive outlook as inventors look over the ECB’s resolution.
Meanwhile, the Covid-19 situation in Thailand is starting to slow down, which could post as a positive sentiment to investors for further lockdown easing next month.
Mr. Suntarapichard recommended “Selective Buy” this week with a support level of 1,620-1,614 points and a resistance level of 1,660 and possibly 1,670 points.
For the investment strategy, Mr. Suntarapichard recommended stocks with potential higher 3Q results in mid and small-cap stocks such as WICE and TNP. Meanwhile, TU could be a good pickup in response to baht depreciation, positive exports growth and the listing of its subsidiary. COM7 is also a good pick for speculation of iPhone 13, while CRC, ERW, ZEN and M are still below pre-Covid level for the reopening theme.