Mr. Kitpon Praipaisarnkit, Director of Strategist Department of UOB Kay Hian Securities (Thailand), stated in “Kaohoon Jor Talad” program on April 30, 2020, that SET Index is expected open with a jump to 1,300 points and will move around 1,300-1,320 from the positive factors in the market.
However, the index between 1,300 to 1,320 was the point where investors made a huge purchase in the past before the index started to decline to 1,200 level. Thus, Mr. Kitpon signalled that there could be a selloff at this point.
As for the speculative strategy, Mr. Kitpon saw that mid-small cap stocks might have more room for speculation than the big cap in SET 50 due to the 1Q profit estimation of SET Index had been revised down around 30%, but if excluding SET 50 estimation, the profit from mid-small cap might be better.
Mr. Kitpon stated that in the first quarter of 2020, the insurance stocks are expected to gain a lot of profit amid the virus outbreak such as Dhipaya Insurance Public Company Limited (TIP) and Thai Reinsurance Public Company Limited (THRE). Stocks expecting to be added into MSCI such as AWC, KTC and TOA are also interesting in Mr. Kitpon’s view, but needed to be cautious as some shares were already priced-in on this positive sentiment.