• US equities reversed meager gains to end slightly lower on Tue as investors wrestled with the fallout from deadly attacks in Brussels despite a further rise in oil prices.
• There are two key events to watch in Thailand today: (1) NBTC’s urgent meeting on the penalties for JAS’s 4G default and the reauction for the 900MHz spectrum licence JAS earlier won and (2) BOT’s policy meeting in the afternoon. The BOT is expected to stand pat on interest rates while its view on the Thai economy may garner more market attention after concerns grow larger over this year’s drought spell.
• Thai stocks may be headed for sideways move with downside bias today after failure to pierce through a key 1400-point barrier. Even though the market may get a further boost from the ICT sector, we believe it would only be temporary amid uncertainty over whether there would be any players keen to take part in the reauction for the above 900MHz spectrum license. The trading range for the SET index is expected to be between 1385-1405 points.
• The short-term strategy is to sell the rallies around 1400+/- points and buy back on dips around 1365+/- points. Equity holdings should be capped at 80% of the portfolio with the following key investment themes to play today:
(1) Tourism recovery play: Hold onto AOT shares.
(2) 4Q earnings play:Hold onto short sell positions in TTA.
(3) Selective play: Hold onto IVL shares after adding to the portfolio in view of strong earnings growth outlook for this year.
Source: poems.in.th / settrade.com
