• US stocks mustered small gains on Mon, receiving a boost from rising oil prices. WTI crude crossed back above US$40/barrel in early trading on Tue while investors looked to the meeting between OPEC and non-OPEC oil producers which might discuss a potential
output freeze deal on Apr 17.
output freeze deal on Apr 17.
• In Thailand, JAS’s failure to meet the fee deadline for the 4G 900MHz spectrum licence it
won on Mon should relieve some pressure on the ICT space. The focus is now turning to
whether there will be any players keen to take part in the re-auction for the said license on
conditions that it must begin at JAS’s winning price of Bt75.65bn, which is quite expensive.
• In a big picture sense, we believe Thai stocks could move sideways up today with scope for a possible break above a key 1400-point barrier.
• However, the boost from oil prices should only be short-lived after Iran reiterated that it
intends to grow its output back to pre-sanctions level while the term and conditions of the
re-auction for the above 4G 900MHz specturm license may overshadow the ICT space.
The trading range for the SET index is expected to be between 1380-1400, 1405 points
today.
• Short-term strategy:
The ‘sell the rallies and buy the dips’ strategy remains appropriate.
We advise investors to sell into strength at 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: Let profits run on ADVANC after JAS’s default on its first upfront fee
instalment payment for the 4G 900MHz spectrum license it won, a move that could
take some pressure off the ICT sector in the near term. The NBTC will call a meeting
on Wed to discuss penalties for JAS and plans for a new auction round.
We advise investors to sell into strength at 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: Let profits run on ADVANC after JAS’s default on its first upfront fee
instalment payment for the 4G 900MHz spectrum license it won, a move that could
take some pressure off the ICT sector in the near term. The NBTC will call a meeting
on Wed to discuss penalties for JAS and plans for a new auction round.
Source: poems.in.th / settrade.com
