ท่านสามารถอ่านและดาวน์โหลดเอกสารได้จาก Daily240314_T Upside still limited |
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Market today | The SET is seen to have limited upside with resistance at 1390 and a following point at 1400 which the index has tested multiple times and so far has been unable to break through. If it can break through, indicators will be positive. Supports are at 1375 and 1370. | Today’s highlights | • Yesterday, Ukraine launched drone attacks on Rosneft oil refinery in Russia, which has an annual oil production capacity of 17.1mn tons, timed at two days before Russia's parliamentary elections, scheduled to begin later this week.
• The EIA reported a decrease of 1.5mn barrels in crude oil inventory in the US last week, contrary to expectations of an increase of 0.9mn barrels. Gasoline inventories dropped by 5.6mn barrels, above the anticipated fall of 1.9mn barrels.
• The US House passed a draft law requiring ByteDance to sell TikTok's operations within six months or else TikTok will be banned in the US.
• The Securities and Exchange Board of India (Sebi) signalled concerns about a potential bubble in stocks of medium and small-sized enterprises (SMEs) and announced plans to strengthen regulations regarding corporate disclosures within the SME sector.
• The Thai Bankers' Association introduced measures to address chronic debt issues, focusing on assisting individual borrowers with revolving credit, aiming to clear debts within five years with an interest rate capped at 15%, effective April 1.
• The State Railway of Thailand announced yesterday the BMA will pay BTS, the operator of the Green Line sky train, Bt23bn for the second phase of its expansion project. This decision was made effective from March 13, 2024. | Strategy today | In the short term, the Thai stock market is expected to be range-bound with a significant resistance at 1400 as there is no new domestic catalyst. External economic figures to be reported this week include Japan 4Q23 GDP, US retail sales (expected to be weak) and US CPI in Feb (expected to be higher than market estimates and pressure the hopes of an interest rate cut by the Fed). The strategy is “Selective Buy”. | Trading today | Weekly portfolio: In the short term the SET is expected to be range-bound without a new catalyst. We recommend “Selective Buy” in four main themes:
1) Speculative stocks with strong fundamentals being bought back to cover shorts and bringing fund inflow, plus the SET’s plans to introduce some measures to regulate short selling – AOT, KBANK, BBL and PTT.
2) Small-cap speculative stocks with strong fundamentals and growth expected in 2024 plus stock price already bottomed – AU, ONEE, SECURE, KLINIQ and HTC.
3) Long-term investors are recommended to invest via DCA accumulation as now would be good timing since the SET has fallen significantly, risk is low and stocks are undervalued – BBL, BDMS, BEM, CPALL, PTT and SCC, all of which are in SET100 and are leaders in their industries with ESG ratings of AAA and AA, valuation lower than 10-year historical average and strong operating results. | Daily top picks | TOP: 1Q24 profit is expected to grow QoQ from a recovery of GRM from higher gasoline and fuel oil crack spreads and lower inventory loss. The stock is trading at a PBV at 0.7x (-1.4S.D.) which is higher than during COVID when it was 0.5x.
GFPT: Profit is expected to be good in 2024 from poultry exports with higher margin, while improving chicken price and lower animal feed cost will bring YoY and QoQ growth in 1Q24, outperforming peers in the food sector. | Today’s reports | Food – Improvement in 1Q24TD led by broiler business
OSP – Aiming at greater efficiency in 2024 | | Click here to read and/or download file Daily240314_E |
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