Thailand’s SET Index is poised for its fifth consecutive winning streak on Thursday after breaking the 1,300 and 1,330 resistance levels in the past weeks. The recent surge, resulting in a nearly 4% gain over five days, comes as political uncertainties diminish with the prompt actions of Thailand’s new Prime Minister, Paetongtarn Shinawatra, in forming her cabinet and implementing cash handout policies to boost Thai economy.
Amid the upward trend in stocks, traders are eyeing opportunities for short covering in the market. Liberator Securities has identified three stocks with significant short covering on August 21, 2024: JMT Network Services Public Company Limited (SET: JMT), Banpu Public Company Limited (NVDR Local) (SET: BANPU), and SISB Public Company Limited (NVDR Local) (SET: SISB).
Notably, JMT has witnessed short covering of 1.7 million shares, while BANPU-R and SISB-R have seen short covering of 3 million and 300,000 shares, respectively.
Mr. Jaroonpan Wattanawong, Head of Research at Liberator Securities, highlighted expectations for JMT’s continued recovery following a challenging second quarter performance earlier this year. The spotlight is on BANPU’s positive uptrend, with analysts anticipating momentum continuation upon breaking the THB5.50 resistance level.
In contrast, SISB exhibited a brief rebound but may face a potential reversal. The recommendation is to accumulate SISB within the THB28.50-30.00 range per share, considering its PEG below 1x and robust fundamentals stemming from expansions and student headcount growth.
Mr. Jaroonpan also identified the top 10 stocks with notable outstanding short sell positions in the market, including TOP-R, TISCO, HANA-R, SPRC-R, BANPU-R, BEM-R, HANA, MINT-R, KTC-R, and KCE-R, all with outstanding short positions ranging from 1-1.6% of paid-up stocks. Among them, HANA and KCE are projected to have the highest potential for rebound.
