US GDP data and Yellen’s speech in focus today: Data released on Thu showed US initial claims for jobless benefits declined to a onemonth low last week. In the spotlight today will be the second estimate of the first-quarter US GDP and Federal Reserve Chair Janet Yellen’s speech at an event hosted by teh Harvard University Radcliffe Institute for Advanced Study to look for clues on the overall US economy to predict the timing of the Fed’s next rate hike.
Gains still fragile: Thai stocks bounced back towards a key 1400-point level again on Thu but we believe the market may not move anywhere far today after the SET index’s forward FY16 P/E has already exceeded 15x (~ 1380 points) and recent gains remained fragile amid belowaverage trading volumes and a lack of fundamental support. In addition, PSR’s Fear & Greed Index, a gauge of short-term investor sentiment also reflects less bullishness in the Thai stock market to the extent that it is about to turn into bearish zone. Today we expect a
trading range of 1380, 1393-1409 points for the SET index.
trading range of 1380, 1393-1409 points for the SET index.
Short-term strategy: Our view is to sell the rallies and buy the dips as long as the SET index can hold above 1380 points. For long-term investment horizon, the ‘buy the dip’ strategy looks more appropriate.
(1) Tourism recovery play: Hold onto AOT shares.
(2) Selective play: Hold onto CHG shares in view of its steady growth profile, capacity addition, which could boost its A-class cash patient volume by more than 40% and an increasing number of social security patients from Chularat Rayong Hospital.
(1) Tourism recovery play: Hold onto AOT shares.
(2) Selective play: Hold onto CHG shares in view of its steady growth profile, capacity addition, which could boost its A-class cash patient volume by more than 40% and an increasing number of social security patients from Chularat Rayong Hospital.
Source: poems.in.th / settrade.com
