Major stock markets in Asia traded mostly lower on Tuesday as investors continued to trade cautiously amid tensions at the Ukrainian border after the U.S. cited that there is a dramatic acceleration in the buildup of Russian armies.
On February 15, 2022, Thailand’s SET Index opened at 1,690.10 points, increased 5.41 points or 0.32%.
As of 10:10 local time in Thailand, Nikkei slipped 0.27%, SSEC gained 0.37%, Hang Seng Index fell 0.54%, ASX 200 dipped 0.16% while IDX Composite increased 0.62%.
Asia Wealth Securities (AWS) expected the SET to move in a sideway to sideway down in a range of 1,670-1,695 points with the SET still having a chance to continue downward correction. However, the reduction frame may be constrained by foreign investors’ buying pressure, causing fund flow to decrease the pressure on the Ukrainian situation, including the pressure from inflation and an increase in the U.S. interest rate, especially in a situation where crude oil prices continue to increase with the greater the pressure on inflation around the world. This is in line with the views of St. Louis Fed President James Bullard that supports the Fed to raise interest rates as much as 1% by Jul 2022.
AWS stated that it is positive on energy and bank stocks, picking KBANK, BBL, BLA, PTTEP, PTT, IRPC, BCP and SPRC, as well as consumer, retail and domestic transport stocks based on Core Investment portfolio. AWS also recommended BEM, BEC, BJC, CRC, CPALL, CPN, MAKRO and HMPRO. Follow China’s inflation report (16 Feb) and FOMC meeting minutes (17 Feb).
Core Investment
1) Stocks that benefit from recovering domestic purchasing power (short-term trading 1-3 months) – BEM, SPRC, BEC, ONEE, BJC, CRC, CPALL, OSP, CBG, MAKRO, HMPRO, KBANK, AWC, LH, SC and ORI
2) Low share price, growth 2022 earnings (short-term trading 3 months) – TTB, BBL, SCB, KBANK, KTB, LPN, PSH, QH, SUSCO, RATCH, STANLY, TRUBB and WIIK
3) Stocks that benefit from the rising interest rate trend (long term-trading, more than 6 months) – BLA, TIPH, SCB, KBANK, BBL and TTB
4) Dividend Play (long-term trading, more than 6 months) – KKP, TISCO, TCAP, LH, QH, AP, SPALI, ORI, RATCH, TVO and TASCO
5) DCA – Long-term accumulative stocks (long-term trading, more than 1 year) – PTT, AOT, ONEE, BEM, GULF, ADVANC, INTUCH, BDMS, XPG, HMPRO, KBANK and KK
