Daily Strategy: SCBS Recommends Profit Taking amid Negative External Factors

Stocks in Asia traded in a mixed session on Monday as investors continued to monitor the China Evergrande situation closely after being suspended in the Hong Kong Stock Exchange.

 

Thailand’s SET Index opened at 1,614.31 points, increased 9.14 points or 0.57%.

On October 4, 2021, as of 10:06 local time in Thailand, Nikkei fell 0.95%, Hang Seng Index plunged 1.86%, Australia ASX200 rose 1.09% and Indonesia IDX Composite gained 1.33%.

Exchanges in China are closed on holiday until Friday.

 

Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on October 4, 2021, stated that the Thai stock market is moving in a support-resistance range, seeing that there is a buyback once the index dropped to a certain level.

However, Mr. Suntarapichard cautioned investors that external factors are weighing the Thai market down such as the Evergrande crisis that recently got suspended in Hong Kong and the trade tension between the U.S. and China after President Biden’s top trade official announced that China did not comply with the phase 1 deal reached under Trump.

Thus, the analysts advised investors to cautiously trade for a short-term investment and take profit as external factors could drag the market down below 1,600 points.

In addition, Mr. Suntarapichard recommended TNP with a positive outlook in 3Q earnings and potential growth, pointing out that the share price is creating a solid base around Bt5.45, giving a target price around Bt6.60-7.00 per share. The analyst also recommended TU with unique positive factors to boost sentiment, giving a support level at Bt21.00 and a resistance level Bt23-24 per share.