Daily Strategy: FSSIA Sees Commodity Stocks to Support Market as Aviation Recover

FSSIA expected SET Index to stand firm above 1,600pts, buoyed by commodity stocks while seeing AAV to outperform among aviation stocks.

Major stock markets in Asia traded in a mixed session on Wednesday as the IMF downgraded Asia GDP growth from 7.6% to 6.5% in 2021.


On October 20, 2021, Thailand’s SET Index opened at 1,634.28 points, increased 3.89 points or 0.24%.

As of 10:15 local time in Thailand, Nikkei rose 0.16%, Shanghai Composite slipped 0.19%, Hang Seng Index increased 1.16%, Australia ASX200 gained 0.77% and Indonesia IDX Composite dipped 0.04%.


The International Monetary Fund (IMF) downgraded Asia’s economic growth in 2021 to 6.5%, compared to the previous forecast for a 7.6% expansion. The downgrade came after a spike of Covid-19 delta variants in some parts of the region. Still, the IMF stated that despite the downgrade, Asia would remain the fastest-growing region in the world this year.


Mr. Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), through “Kaohoon Jor Talad Program” on October 20, 2021, stated that the slowdown in Thai stock market was due to a lack of major shift in economic recovery from the government sector that did not propose anything new from the meeting on Tuesday.

Still, Mr. Sinsadok noted that the SET Index should not retreat to lower than the 1,600 level while the commodity sector would support and offset weakness in the market due to the ongoing uptrend of energy prices.

Mr. Sinsadok viewed that commodity stocks would continue to outperform throughout this year and should be accumulated on weakness. The analyst also set his eye on aviation stocks after the announcement of capital increase that will benefit existing shareholders and will strengthen its business that tops NOK and THAI which are still in a weak stage. Lastly, another stock that will benefit from the recovery from domestic and international flight is BAFS.

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