High PE ratio, vaccine study set Thai bourse back a bit

A Krungsri Securities stock analyst expected the index to remain at between 1,300 and 1,320.
He said that the market had gained positive sentiment from the second phase of lockdown easing and the rising crude oil price.
“Investors expect the demand for oil to recover after several countries eased their lockdown measures,” the stock analyst said.
However, the index would be under pressure due to news reports that a study of the new Moderna vaccine did not yield enough critical data to assess its success.
“In addition, investors would sell stocks as the index’s forward price-to-earnings ratio rose over 17 times, the highest among emerging countries,” the stock analyst said.
The analyst recommended investors buy these stocks:
● Energy stocks, such as PTT, PTTEP, TOP, PTTGC and SPRC, due to a rise in the price of crude oil.
● Retail stocks, such as CRC, CPN, HMPro, Global, Com7, and DoHome, due to the second phase of lockdown easing.
● Stocks whose second quarter performance would improve, such as CKP, Tasco and EPG.