• US stocks finished lower on Wed as oil prices logged the largest drop in a month. WTI crude oil prices tumbled 4% to settle below the key US$40/barrel mark after a sixth straight week of record highs in US crude stockpiles and the resurgence of the US dollar.
• The Bank of Thailand stood pat on its monetary policy on Wed but offered a bleaker view on the Thai economy after it axed its GDP growth forecast for this year to 3.1% from 3.5% despite a likely pickup in public investment. However, the current drought spell remains a cause of concern for us as it may dampen consumer confidence and investment.
• Thai stocks appear headed for a slight pullback today, tracking overseas market losses and oil prices and amid meager foreign buying on Wed. The trading range for the SET index is seen between 1400-1420 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: Add more positions in AOT shares on speculation of more progress in the second phase expansion of Suvarnabhumi Airport after the bid for construction of the Bt14.2bn midfield satellite concourse building was open on Wed.
(2) 4Q earnings play: Hold onto short sell positions in TTA.
(3) Selective play: Hold onto IVL shares.
(4) Government policy play: Take long positions on 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.
(2) 4Q earnings play: Hold onto short sell positions in TTA.
(3) Selective play: Hold onto IVL shares.
(4) Government policy play: Take long positions on 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
