Strategy: The SET rebounded to a new high amid heavy buying by foreign investors. However, FSS views that we still need to keep an eye on profit taking which will pressure the index to turn to retreat going forward because the SET has sharply increased since the beginning of the year, while there is no fresh catalyst to provide support. For this reason, we maintain our call for investors to sell to lock in profit, particularly at 1420 or above, and hold cash waiting to buy back on weakness.
Technical stocks: SCN, ANAN, PTG(buy back)
Market direction: Yesterday, the SET turned to rally to a new high, supported by buying in banks and energy shares. Although crude price continued to weaken, it was somewhat steady as investors waited for clarity over a meeting among oil producing countries, which is scheduled to take place on April 17. Moreover, the IEA has mentioned that Iran oil production would not trigger severe supply glut as many had anticipated. This has somewhat helped provide support for global crude to stabilize. Meanwhile, the Fed Chair made a statement the other day, signaling that the central bank was in no hurry to increase its rate. Given that, investors were less concerned that the Fed would raise policy rate sooner than expected. In addition, the market was supported by a report that U.S. private sector hired more workers in March. However, FSS believes that some investors still want to wait for U.S. non-farm payrolls that is due out this Friday's night. Hence, the SET is likely to be volatile and retreat once again. This is seen from Asian stock markets this morning; many of which began to modestly increase, while some retreated. Yesterday, foreign investors registered a large buy position of over Bt8bn. However, we view this is not new. In addition, they were just buying from the remaining liquidity, which had been flowing into the country nearly throughout March. For this reason, we recommend that investors wait to buy on weakenss.
Support 1407-1400 , 1396-1390
Resistance 1413-1416 , 1420-1423
Source: fnsyrus.com / settrade.com
