• Global equities remained wedged in a tight band ahead of key policy meetings
from major international central banks throughout the week including BOJ, US
FOMC and BOE. The BOJ is the first in line to release its monetary policy
statement today but we believe it may have little impact on the market as more of
the market’s attention remains glued to the US FOMC’s two-day policy meeting
on Mar 15-16. Even though the Federal Reserve appears to be in no hurry to pull
the trigger on its next rate hike at this meeting, its clues on future rate hikes
throughout the year however seem to be in the focus of the market. In our view,
we stick to our view that the Federal Reserve will make at least another rate hike
this year.
• In Thailand, volatility should continue to rule the day but the market would likely
remain rangebound today. Notwithstanding that foreign investors switched to net
buyers of Thai equities worth Bt2bn on Mon, overall market turnover however
markedly slowed down, raising the odds of a pullback in Thai stocks. The trading
range for the SET index is expected to be between 1380-1410 points today.
• Short-term strategy: The ‘sell the rallies’ remains the preferred tactic in view of
limited room for further upside. Equity holdings should be maintained 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) Infrastructure play: On Mon, we took profits in SCC shares in the afternoon
session at Bt472 with a gain of 4.3%.
(4) Selective play: We added ADVANC shares to the portfolio in the afternoon
session on Mon at Bt173.50 on view that the impact from the migration of the
remaining 2G subscribers appears limited.
Source: poems.in.th / settrade.com
SET
