Country Group Securities (CGS) revealed that the assessment of SET INDEX will swing this week. Sideway-Sideway Down within a frame of 1,500-1,530 points from no new factors. by the situation of Coid-19 still have the greatest effect on investment The latest data shows no positive signs of 1. The number of infected people remained at a high level. 2. The trend of outbreaks in the provinces, including Bangkok and its vicinities, have not seen any signs of reversal or slowing down reduce But believe that the positive effect on investment is still limited.
While this week will enter the final curve of the earnings announcement of listed companies in 2Q21, especially the Domestic Play group, which is the group that has been most affected by the Covid-19 outbreak. It remains to be seen what analysts and executives will view next, both in terms of outlook and fundamentals (Valuation, Target Price). Based on data from Bloomberg, the SET 100 estimates this week it will report around 72.
Therefore, from all the data that appears to be full of negative factors, SET INDEX is expected to swing sideways. There is additional pressure factor from the baht’s tendency to weaken, stimulating foreign investors to sell more.
Another factor this week, in addition to the earnings announcement, is the US CPI report on Wednesday. Bloomberg estimates +5.4%YoY, believing the market would like to see a figure that is closer to or slightly better than expected to avoid the Fed rushing to withdraw liquidity from the market. Market (QE Tapering) and the Covid-19 Situation In the country, if there are positive signs such as higher recoveries, higher infections per day or significantly lower infections The market may start to respond positively. However, if the opposite happens, it may be pressure instead.
investment strategy We still recommend defensive stocks like communication and power plants as usual, such as ADVANC BCPG BGRIM GPSC GULF, as well as export groups that benefit from the weak baht such as ASIAN DELTA HANA KCE TU believe that it will outperform more than Domestic Play.
Recommend GPSC (Buy / target price Bt95) Expect the company’s earnings in 2Q21 to improve from the same period last year. and the previous quarter from the higher performance of the IPP based on seasonal factors (Higher Availability of both GHECO-one and GIPP) and higher recognition of profit from XPCL.
KCE (Buy / target price of Bt90) KCE expects to report 2Q21 operating results of Bt531 million (up 644% y-o-y and 6% q-o-q), with key driving factors coming. From revenues that grew to 3.6 billion baht, an increase of 71% from the same period last year. From a low base in 2020 and an increase of 7% qoq based on increased operating days and price hikes.
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