Fear of new strains of covids dragging the index down. “Trinity” recommends investment strategy in December. Wait to buy a frame of 1,550-1580 points.

“Trinity” recommends investment strategy in December. Wait to buy at the index level of 1,580 and 1,550 points, respectively, as fears of the new strain of coronavirus will cause investors around the world to sell risky assets in the early stages. Before then, if it is proven that the original vaccine is still effective against It is expected that the index will gradually climb up.

Mr. Nuttachat Mekmasin, Assistant Managing Director Securities Analysis Department Trinity Securities Co., Ltd. revealed the investment direction in December 2021 that the outbreak of the new strain of covid “Omicron” in this round occurred at a not very good time. high level world Especially on the developed countries such as the US and Europe, on the other side is in terms of monetary policy. If this happens during a period of extreme easing in global monetary policy It probably won’t have much effect. But it appears that this period is when the market is reflecting the possibility that the Federal Reserve (Fed) will begin to tighten monetary policy, so this situation is quite easy for the stock market to face a correction.

However, the mutation of COVID is not new. Because before, there was a story of various Variant species to see. Although there is beginning to be evidence that the Omicron strain is rapidly spreading compared to previous strains, it proves that its impact in terms of loss is not much different. Or, most importantly, prove that the same vaccine group that had been produced and injected previously can be effective against and prevent this new species. It is believed that this will prompt investors to reduce their concerns. In this base case, it is believed that the austerity measures introduced will be limited to international travel only. Evaluate the first support level of the SET Index at 1580 points and key support at 1,550 points.

If in the worst case If it starts to prove that this new virus has the ability to evade the original vaccine. Until the need to develop a new vaccine and count one. There is a high chance that the SET will break the key support level at 1,550 points, as in this case we believe that the lockdown will not be just the nature of the border closure. But it will have to come back to limit people’s lives to stay at home again. This situation is likely to lead to further recession concerns.

Mr. Nuttachat said that at first, he looked at the stocks that would be affected immediately, namely: Groups involved in international travel such as hotels, airlines and airports, especially if it is a company with European business, could be hit a little. Because some countries in the region have already begun to suspend the entry of people from high-risk countries. Not counting with the increasing outbreak of European countries themselves as well. Therefore, it is recommended to avoid related companies such as MINT, CRC, S, AOT, as well as oil stocks that have been negatively affected by the fall in crude oil prices from the expected impact on demand at the moment.

In addition, what must be observed in the next period is whether this new species will be able to spread into Thailand or not. Recently, the infection began to be found in Asian countries such as Hong Kong. which we hope will not happen. But if there is bad news, it is found that the infection has entered Thailand. Considering that on the first day that the news came out, the SET index had a chance to fall sharply immediately. As investors are beginning to worry that internal travel restrictions may begin to be implemented again. At this point, domestic consumption and internal reopening stocks are likely to be hit hard, citing the SET Index’s most significant downside risk over the period.

“All of the above factors may cause in the short term to move speculative money into stocks that benefit indirectly from the outbreak such as Hospital groups and rubber gloves groups, etc., but we do not recommend medium-long-term investors. invest in this group of stocks Because if it proves that this new species is not very scary. These stock prices have the potential to immediately fall sharply.”

Mr. Nuttachat also said that if cutting out this new species issue And focus on the development of the same strain of covids in each country. At the moment, it is found that the European zone continues to have severe outbreaks. As a result, we look at safe stocks for both short-term speculation and medium-term investments in anticipation of a certain positive earnings momentum. to Thai food/agricultural export stocks That tends to benefit from higher demand, not including the benefit of the baht that is still heavily depreciating at the moment. Choose XO and ASIAN as the group’s top picks.


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