Sideways

• The DJIA ended marginally higher on Thu after data showed US initial jobless claims rose less than forecast to 265,000 while oil prices held steady and investors held off taking positions ahead of the Good Friday holiday.

• Following the end of key policy meetings from major global central banks, the market’s focus will next week turn to the release of key economic data mostly out of the US and Europe.

• In our view, Thai stocks seem destined for a sideways session today amid a lack of a boost from strong foreign and institutional inflows. On Thu, foreign and institutional investors snapped up only a net Bt573mn and Bt602mn worth of Thai shares respectively while statistical data shows the end-of-quarter ritual of window dressing may not come into play by the end of this quarter. Thai export data will also be in focus today. The trading range for the SET index is expected to be between 1400-1415 points today.

• Short-term strategy:

As current market valuation looks relatively stretched, selective and government policy plays seem to be good short-term bets. Equity holdings should continue to be capped at 80% of the portfolio with the following key investment themes to play today:
(1) Tourism recovery play: Hold onto AOT shares on speculation of more progress in the 2nd phase expansion of Suvarnabhumi Airport after the opening of the bid for construction of the Bt14.2bn midfield satellite concourse building on Wed.
(2) 4Q earnings play: Hold onto short sell positions in TTA.
(3) Selective play: Hold onto IVL shares.
(4) Government policy play: Hold onto LPN shares on view that it would be the biggest direct beneficiary of the government’s low-cost housing scheme under the Pracha Rat initiative.

Source: poems.in.th / settrade.com