Strategy: The SET turned to move up strongly in the afternoon after it swung wildly in the morning due to profit taking. However, there is no fresh catalyst to provide support. As a result, FSS believes that the SET will fall and recommend that investors wait to buy on weakness. After which, we suggest that investors hold because we expect the index to rally afterwards.
Technical stocks: BLA, THCOM, ROBINS(buy back)
Market direction: Yesterday, the SET saw buyback momentum that supported it in the afternoon after the index moved within narrow range in the morning due to pressure from profit taking. Meanwhile, international equity markets were not bright, pressured by global crude which tumbled quite sharply after lower-than-expected results from the joint meeting between both OPEC and non-OPEC member countries. However, global crude began to recover later in the day and closed only slightly down. As a result, there was buyback in energy shares. Moreover, banks which plunged in the beginning due to concern over their 1Q16 earnings results which are about to be out shortly also saw buying that supported them to turn to end higher. Given all that, the SET closed up quite well. This morning, the index continues to see support from Wall Street's rally of over 100 points to end above 18,000, the first in nine months, after strong quarterly results of listed companies in the U.S. With that, Asian equity markets recovered at the open this morning. However, banks' weak earnings outlook is set to pressure the SET to see limited gain. What's more, the concern over slow global economic recovery is likely to put a cap on the SET, making it possible for the index to turn to fall. For this reason, FSS recommends that investors do not buy into strength and wait to buy on weakness.
Support 1395-1390, 1387-1385
Resistance 1400-1403 , 1406-1413
Source: fnsyrus.com / settrade.com
