• Global stocks rebound on Brexit referendum optimism: Investors have pinned hope Britain would choose to stay in the European Union and that fueled risky demand. An official vote is needed to eye closely and a downside surprise would trigger heavy selloff while New Castel and Sunderland declared results of leaving the EU with a greater vote count than the opinion polls.
• Positive sentiment seen short-lived: Investors however already digested the move while foreign investors already took some profits yesterday. While global markets had endured a sharp pullback due to the Brexit concern, SET in turn faced just the slight declines, suggesting investors had put away that matter at that time and thus the referendum results would trigger a sell on fact.
• Any rises offering opportunity to take profit: Although the shortterm sentiment appears positive apart from the looming sell on fact, SET’s demanding valuation has seemingly put a damp on long-term investment. We thus see a rise as a good opportunity to take profit, particularly at 1440 points or higher. Support is noted at 1424 points.
• Short-term investment strategy: Any rallies are seen as an opportunity to take profits and any correction should be used as a buying opportunity.
(1) Tourism recovery play: Hold onto AOT shares.
(2) Selective play: Hold onto long position in PTTGC and short position in THAI after we took profit in TK as price reached the targeted level (more detail in upside momentum stocks in Quant Series, released every 16th of month).
Source: poems.in.th / settrade.com
