Strategy: The SET has rebounded by over 30 points before the long holiday. Meanwhile, there is no fresh catalyst to provide support and oil misses the expectation. For this reason, we maintain our call that investors wait to buy on weakness. Focus on counters that are likely to report strong 1Q16 results, e.g. finances, hotels, hospitals and a number of commerce stocks.
Technical stocks: SUPER, RS, BCP(short)
Market direction: Last week (April 11-15), even though the SET traded only two days, the index rallied by over 30 points, before the long Songkran holiday, to bet on results from a meeting of both OPEC and NON-OPEC member countries during the weekend. While we were closed, most international markets continued to increase to speculate on prospect that oil would continue to recover after the said meeting. However, as it was closer to the meeting date, there was selling to reduce risk, which pressured many markets to ease late last week. As it happened yesterday (April 17), the joint meeting did not produce concrete results to support global oil price. As a result, global crude turned to move below US$40 a barrel again this morning. This has pressured most Asian equity markets to open lower this morning. Given that, FSS expects domestic investment sentiment to also be pressured. Moreover, we believe that the SET will turn to move downward. For this reason, we maintain our call for investors to wait to buy on weakness. However, we view that the SET will stabilize better going forward thanks to support from buying after liquidity in the market remains plentiful, in line with cash injection that many countries have made recently in order to stimulate their economy. Hence, we view that a loss will serve as an opportunity to accumulate. After which, we recommend that investors hold, waiting to sell into strength.
Support 1382-1380, 1375-1372 , 1368-1365
Resistance 1386-1390 , 1395-1403
Source: fnsyrus.com / settrade.com
