US stocks extended gains last Fri spurred by the Federal Reserve’s tempered view on interest rates and additional stimulus measures from ECB despite a slight decline in crude oil prices. WTI crude fell back after a rally above US$40/barrel.
In Thailand, the market spotlight will be squarely on JAS as today is the deadline for the first instalment payment for its 4G 900MHz spectrum licence, a factor that could bring volatility to the ICT space.
Thai stocks may see another session of sideways trading today amid a tug of war between negative factors from oil price retreat and possible proprietary selling after a huge amount of cumulative buying and positive factors from potential foreign inflows in the near term after heavy net foreign buying of both Thai equities and futures to the tune of Bt3,644mn and 3,660 contracts respectively last Fri. The trading range for the SET index is expected to be between 1370-1390 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 cut loss on PTTEP after a precipitous drop in share prices.
Source: poems.in.th / settrade.com
