• Brexit in the spotlight: A referendum on the fate of Britain membership in the European Union, which will be held on Thursday, June 23, has been the market’s centerpiece for a while, which appears likely to generate volatility in stock markets until the results unveil. The latest poll showed a majority of respondents wanted to stay in the EU and that seems to cheer up the market sentiment. The US dollar weakened early trading Monday.
• Domestic factors back in plays: A looming of alternative financial transactions “Prompt Pay” has seemingly cast doom spell on the banking sector. This, together with the upcoming second-quarter earnings preview, would weigh on SET’s valuation, which is currently trading at a demanding forward P/E above 15x. A downgrade on the SET’s EPS will likely put a damp on the sentiment and thereby foreign buying would be lackluster.
• Key support seen at 1395 points: With the looming extreme volatility and SET’s demanding valuation trading at forward P/E above 15x, we stick to our stratery of trading range. We set a stop-loss at 1395 points, which also serves as key support (More detail in our Strategy Report dated June 8). The SET today would trade within a range of 1410-1430 points.
• Short-term investment strategy: Sell into strength and buy the
pullback
(1) Tourism recovery play: Hold onto AOT shares.
(2) Selective play: Hold onto long position in TK and PTTGC, and short position in THAI.
Source: poems.in.th / settrade.com
