Major bourses in Asia traded higher on Wednesday as traders closely monitored the situation between Russia and Ukraine after more sanctions were imposed on Russia from other nations overnight.
Asia Plus Securities (ASPS) believes that tensions in Eastern Europe are unlikely to hurt money markets or gold prices, and that markets will stabilize as long as conflict does not escalate.
The SET Index still has positive momentum from foreign buying, despite conflict rising. Foreign net buys totaled THB2.7 billion in the past two days and THB57 billion in February (MTD), the second highest level in three decades (since SET inception).
Besides the Russia-Ukraine conflict, Thailand has been overwhelmed by an increase of COVID-19 cases, but ASPS believes the Thailand outbreak is probably near the final bend now and will have limited impact on SET Index.
Thus, ASPS recommends big-cap stocks with solid fundamentals and price laggards. Top picks are The Siam Cement Plc. (SET: SCC) (TP: THB500.00), Global Power Synergy Plc. (SET: GPSC) (TP: THB86.50), and CP All Pcl. (SET: CPALL) (TP: THB70.20) (for immunity from Russia-Ukraine tension).
