Oil down slightly: The room for further rise in oil prices looks limited in the absence of fresh positive catalysts. For this reason, investors should watch out for profit-taking in recently high-flying energy shares.
No rate hike expected from upcoming FOMC meet: The odds are that the Federal Reserve may not be in a hurry to pull the trigger on another interest rate hike at its Apr 26-27 policy meeting but its view on the following key issues including slowing growth in China, persistent slowdown in Europe despite a series of stimulus measures and no signs of a strong recovery in oil prices may however garner more market attention.
Lack of foreign inflows: In MTD, foreign inflows into Thai stocks abated. It seems to us that foreign inflows came in only as short-term speculation. To keep funds flowing into Thailand, much would depend on upside earnings surprises which would eventually lead to consensus earnings upgrades.
No positive catalysts in sight: The market was buoyed by first-quarter earnings plays. Despite a bleak earnings season for banks, much of the bad news appeared to have already been baked in. This week SCC and PTTEP will be among bellwethers to release quarterly numbers but earnings however look unexciting and recent strong share price gains may leave them vulnerable to the risk of profit-taking if earnings miss expectations. Overall, we believe Thai stocks may be range-bound within 1395-1415 points today ahead of key earnings this week.
Short-term strategy: Selective plays will do well in current market conditions. Equity exposure should also be kept at 60% of the portfolio.
(1) Tourism recovery play: Hold onto AOT, CPALL and SPA shares.
(2) Selective play: Hold onto MAJOR shares on the upcoming release of the bigticket Hollywood film Captain America 3 on Apr 27.
(1) Tourism recovery play: Hold onto AOT, CPALL and SPA shares.
(2) Selective play: Hold onto MAJOR shares on the upcoming release of the bigticket Hollywood film Captain America 3 on Apr 27.
Source: poems.in.th / settrade.com
