Strategy: The SET rebounded to move in positive territory after the index decreased quite considerably in the last two weeks. However, the market continued to lack fresh catalyst to provide support. Hence, FSS expects upside to be limited. Moreover, there is prospect that the SET will see pressure from selling. As a result, we recommend that investors do not buy into strength and wait to accumulate on weakness. After which, we suggest investors hold, waiting for a new round of rallies.
Technical stocks: MINT, RP, GPSC(buy back)
Market direction: The SET rebounded to end up in the afternoon session of yesterday after global crude that moved in positive territory nearly all day triggered buying in Thai equity markets. However, there was selling that pressured the oil market in the evening after there was news that Saudi Arabia had dismissed its Oil Minister. In addition, it saw additional pressure from a wildfire report in Canada that the fire which affected oil sand production had eased, causing June oil contract to fall by more than 2% and, consequently, dragging energy shares in the U.S. to weaken. As a result, the Dow turned to end slightly lower. This morning, most Asian stock markets also opened down. Yesterday, buying in the domestic markets was weak. Given that, FSS expects the SET's upside to be limited. In addition, investors need to watch out for selling that will pressure the index to fall. For this reason, we maintain our call for investors to wait and buy on weakness for medium- to longterm investment.
Support 1390-1385, 1380-1374
Resistance 1395-1397 , 1400-1405
Source: fnsyrus.com / settrade.com
