• Upbeat US jobs data: US ADP private payrolls rose 172,000 in Jun, beating market expectations for a 159,000 gain. In a separate report, the US Labor Department said initial claims for state unemployment benefits declined 16,000 to a seasonally adjusted 254,000 for the week ended Jul 2, better than market expectations of 270,000. More jobs reports will be on tap today with the closely watched US nonfarm payrolls in focus. Any strong gains in nonfarm paryolls may bring fears of a Federal Reserve rate hike back to the forefront of the market.
• Big oil drop: WTI crude oil prices fell as much as 4.8% to US$45.14/barrel on Thu after the US government reported a smaller than expected draw in US crude inventories. Tumbling oil prices may put renewed pressure on energy counters and risk assets.
• Short-term trading: The room for upside in Thai stocks looks limited as foreign and institutional investors remained engaged in a money game of short-term speculative trading, leaving the market at risk of short-term profit-taking. However, the downside may also be limited by earnings play as banks will be the first sector to kick off earnings season next week. Support for the SET index is seen at 1444 points and resistance at 1467 points today.
• Investment strategy: To play current market conditions, a selective strategy remains the preferred choice. Any rallies should be used as profit-taking pportunities.
(1) Tourism recovery play: Hold onto AOT.
(2) Selective play: Hold onto PTTGC and MAJOR.
(3) Upside momentum play: Hold onto ERW and go long BCH and SCN.
Source: poems.in.th / settrade.com
