SET seen stuck in same range of 1375-1400

For external factors, much of the investors’ attention will be focused on Fed chief Janet Yellen’s speech to the Economic Club of New York today in search of the latest clues on the timing of the next rate hike.
 

However, internal factors seem to take a front seat to external factors as the final version of the draft charter prepared by CDC will be unveiled to the press at 1339 hrs today. The high-speed train route between Bangkok-Nakhon Ratchasima and other electric rail routes will also be tabled for cabinet approval today. Measures to cope with drought and whether the Finance Ministry will propose a third round of stimulus measures including a tax deduction of up to Bt15,000 for dining and travel expenses during Songkran also need to be closely watched.
 

Thai stocks look set to remain stuck in the same range of 1375-1400 points today while the risk to the downside remains amid fading momentum in foreign inflows and heavy institutional sell-off on Mon. Despite everything, the approval of the government’s investment projects and a possible new round of stimulus measures should help limit the market’s downside.
 

For short-term strategy, selective and government policy plays seem to be good trading bets. Equity holdings should be capped at 60% of the portfolio with the following key investment themes to play today:
(1) Tourism recovery play: Hold onto AOT shares.
(2) Selective play: Cut loss on IVL at ATO after a sharp share price retreat and switch to CPALL in the run-up to the long Songkran holidays when spending normally rises during the festival.
(3) Government policy play: Hold onto LPN shares (low-cost housing scheme under the Pracha Rat initiative).

Source: poems.in.th / settrade.com