Globlex Securities (GBS) expects a sideways trend in the Thai market due to the lack of new catalysts and the threat of an inverted yield curve. This would result in a range of 1,680-1,720 point movement for the SET Index. Thus, GBS recommends investing in the country’s reopening stocks.
Thai markets are likely to remain volatile but within a restricted range, with foreign funds continuing to flood in. The good news is that oil prices have begun to fall.
The Federal Reserve’s next meeting is scheduled on 3-4 May, with many anticipating a 0.50 percent rate hike. Meanwhile, more than 431,000 jobs were added in March, marking a new low in the US unemployment rate, but still lower than expectations.
Caixin China’s March manufacturing PMI dipped to 48.1 from 50.4 in February, the lowest level since February 2020, as output slowed as a result of city-wide lockdowns in several cities to curb COVID-19 outbreaks.
Factors to keep an eye on include Thailand’s goods and services prices, exports, banks’ 1Q22 financial consolidated statement, the Eurozone’s March PMI, the US PMI and trade report in February, etc.
For the investment theme, GBS suggests equities that profit from Thailand’s expected easing of all entry restrictions from 1 June, such as the Thailand Pass requirement and the Test & Go program. This will boost both the tourism industry and tourism-related equities, such as Airports of Thailand Plc. (SET: AOT), the Erawan Group Plc. (SET: ERW), Central Plaza Hotel Plc. (SET: CENTEL), Minor International Plc. (SET: MINT), and Asset World Corp Plc (SET: AWC).