• US stocks bounce on commodity rally: The DJIA surged up to 222.44 points on Tue led by gains in energy shares after WTI oil prices rallied by as much as 2.8% to settle at US$44.66/barrel boosted by crude supply outages in Canada, Nigeria and elsewhere and expectations that record U.S. crude inventories would not swell by as much as they had in recent weeks.
• Emergence of foreign sell-off: Foreign investors dumped Thai shares for two days to the combined tune of Bt3bn and raised their net short positions in futures by more than 9.2k contracts on Tue. However, we believe bullish sentiment from global stock and commodity rally may help temper the pace of foreign sell-off somewhat today.
• BOT seen holding rate steady: In our view, the odds are in favor of BOT standing pat on its key policy rate at 1.5% on expectations that inflation will accelerate in the second half of the year. The policy decision is therefore unlikely to have a major impact on the market.
• SETI seen locked in same trading range during height of earnings season: Earnings will remain in the spotlight as we head into the final stretch of earnings season. It seems to us that the SET index will likely remain stuck in the same trading range today with key support level pegged at 1380 points and resistance levels at 1400-1410 points.
• Short-term strategy: Selective play will continue to do well in current market conditions. Equity exposure should also be kept at 60% of the portfolio.
(1) Tourism recovery play: Hold onto AOT shares after booking profits on CPALL shares on Tue.
(2) Earnings play: Hold onto LH and AAV shares on expectations of strong 1QFY16 results.
(3) Selective play: Hold onto MAJOR shares.
(2) Earnings play: Hold onto LH and AAV shares on expectations of strong 1QFY16 results.
(3) Selective play: Hold onto MAJOR shares.
Source: poems.in.th / settrade.com
