Securities firm picks stocks to hedge risks
The Thai stock market is expected to rebound this week, with the initial resistance level projected at 1,530 points and a subsequent resistance level at 1,545 points.
The initial support level is 1,491 points, followed by the next support level at 1,477 points, with the market supported by expectations of economic stimulus in China and political clarity in the country, Krungsri Securities says.
For China-related stocks, the focus is on IVL, PTTGC, KCE, HANA, WHA, AMATA.
Local stocks (banks, retail, beverage sectors) to watch include BBL, SCB, ICHI, OSP.
As for stocks entering the SET-50 index, investors should consider TLI and WHA (weight adjusted on June 30).
In terms of external factors affecting the Thai stock market, the US consumer confidence index for June was 103.5, up from 102.3 in May. Overall, the economic indicators of the US are gradually stabilising.
Additionally, on June 30, the US will disclose the Personal Consumption Expenditures Price Index (PCE) with a market expectation of +4.7% year-on-year. Meanwhile, the Eurozone or EU announced the Consumer Price Index (CPI) with an expected market increase of +5.6% year-on-year, down from +6.1% year-on-year in May, and +0.3% month-on-month.
China reported the Manufacturing Purchasing Managers' Index (PMI) for June, with an estimated market value of 49, and the Services PMI with an estimated market value of 53.7. Additional stimulus measures in China are expected before July 1.
Thai exports data for May is estimated to decrease by 8.0% year-on-year, compared to a decrease of 7.6% in April. Internal politics, particularly the formation of the next coalition government, will be closely monitored after the Election Commission certifies the election results this July 13.
Stocks to watch this week:
HANA (target price: 58 baht): Potential for continuing economic stimulus from China.
ICHI (target price: 17.2 baht): 2nd quarter 2023 earnings reached a peak, and stock price returned to the investment zone.
Despite closing above the 1,500 point mark on Friday, Krungsri Securities notes that the recovery still has a limited upside due to the lack of significant supporting factors and pressure from unclear political circumstances. This also includes mid-to-small-cap stocks, which continue to lose investor confidence, especially among foreign investors.
The SET index is expected to move within the range of 1,490-1,520 points this week. Investment strategies will not call for increases in portfolio investment, as the index is likely to adjust downward further due to various risks in the near future. Recommended short-term stocks include CPN (target price: 83 baht), CPALL (target price: 72 baht), BBL (target price: 190 baht), and KTB (Target price: 21.40 baht).
