• US stocks down for 2nd straight week: A smaller-than-expected rise in US nonfarm payrolls exerted more pressure on the global economy while investors rotated towards less risky TIPs and bullion and away from ETFs in the US markets. In commodities markets, oil extended its rise.
• Trading volume likely to pick up but sentiment less bullish: Trading on the Thai stock market is likely to pick up with a greater role of both foreign and institutional investors after a long holiday weekend passed. However, a lack of strong positive catalysts may keep the market trapped in a tight trading band.
• More earnings on tap: Notably big-cap bellwethers due to hand in their quarterly results this week include TOP, PTTGC, ADVANC and THCOM but overall earnings are expected to be lower than a year earlier.
• SETI seen stuck in tight range: Higher oil prices may give some boost to Thai stocks today. Resistance is seen at 1400 points. However, the market’s recovery momentum may lose tempo if the SET index fails to hold above 1380 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 and CPALL shares and take profits in SPA shares at short-term target price.
(2) Earnings play: Hold onto LH shares on expectations of solid earnings growth in 1QFY16 and take long positions in AAV shares to bet on strong 1QFY16 earnings results driven by tourism revival.
(3) Selective play: Hold onto MAJOR shares.
Source: poems.in.th / settrade.com
