• US stocks moved higher on Thu, receiving a boost from a rally in energy shares and commodity prices on the back of a weaker US dollar triggered by the Federal Reserve’s dovish stance on the next round of interest rate revision. In the UK, the Bank of England (BOE) also warned that Brexit uncertainty might pose risks to economic growth in a move that saw the central bank become increasingly active in the political debate. However, we place little weight on the Brexit issue for the meantime.
• In Thailand, the market appears set to continue its sideways action for a while as trading turnover seemingly slowed down against the backdrop of continued foreign selling spree and slight return of institutional buying. The trading range for the SET Index is expected to be between 1370-1395 points today.
• Short-term strategy:
The ‘sell the rallies and buy the dips’ strategy appears to be the best way to play a sideways market. We advise investors to sell into strength around 1400+/- points and buy back on weakness at 1365+/- points. Equity exposure should be capped at 80% of the portfolio with the following key investing themes in play today:
(1) Tourism recovery play: Hold onto AOT shares.
(2) 4Q earnings play:Hold onto short sell positions in TTA.
(3) Event trade: Hold onto ADVANC and PTTEP shares.
(1) Tourism recovery play: Hold onto AOT shares.
(2) 4Q earnings play:Hold onto short sell positions in TTA.
(3) Event trade: Hold onto ADVANC and PTTEP shares.
Source: poems.in.th / settrade.com
