• US stocks down after ugly jobs report: Shares on Wall Street ended lower last Fri after investors weighed implications of the latest dismal US jobs report on the Fed’s monetary policy decision in two weeks. US nonfarm payrolls increased by only 38,000 jobs last month, the smallest gain in 6 years and below market forecast, diming expectations of some market participants that the Fed might pull the trigger on its next rate hike during the middle of this month and causing the US dollar to weaken sharply against rivals.
• No Fed rate hike expected at upcoming meeting: In our view, the Fed may not be in a rush to raise interest rates at its coming policy meeting on Jun 14-15 but we believe much of the market’s focus will turn to its rate rise projection for this year that it will give after the end of the meeting.
• Trading seen choppy: To play a choppy market, selective trading looks appropriate while the market’s current valuation of over 15x forward P/E makes it less attractive for long-term investment in the meantime. Resistance for the SET index is pegged at 1440-1444 points and support at 1420 points today.
• Trading strategy: In the near term, the ’sell the upsticks and buy the dips’ approach on a selective basis looks appropriate. For long-term investment, any big market dips should be taken as buying opportunities.
(1) Tourism recovery play: Hold onto AOT shares.
(2) Selective play: Hold onto CHG shares and take trading long positions on SIRI and TK shares after Bloomberg consensus target price upgrades and based on favorable fundamentals in terms of high and consistent dividend payouts and low P/E and P/B multiples.
Source: poems.in.th / settrade.com
