Daily Strategy: SCBS Expects Limited Upside for SET as Reopening Theme Already Priced In

Major stock markets in Asia traded mostly higher on Monday, November 1, 2021, as Japan led the gain after the Liberal Democratic Party secured sole majority in the lower house election.


Thailand’s SET Index opened at 1,629.81 points, increased 6.38 points or 0.39%.

As of 10:13 local time in Thailand, Nikkei rose 2.23%, Shanghai Composite gained 0.04%, Hang Seng Index fell 1.38%, ASX200 increased 0.72% and IDX Composite edfed 0.14% higher.


In Sunday’s general election, Japan’s ruling Liberal Democratic Party (LDP) secured a sole majority in the lower house of parliament with 293 seats to 162 seats. However, the results has shown that the LDP has lost a sizable number of seats including several high-profile former cabinet ministers.


Mr. Ekpawin Suntarapichard, investment strategists of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on November 1, 2021, stated that the overall outlook still lacked positive factor as reopening stocks had princed prior to the actual reopening on November 1 and could face a profit taking in a short-term.

Mr. Suntarapichard stated that the Thai stock market could bounce back from last week’s loss but with a limited upside at a resistance level of 1,630-1,640 points and recommended investors to monitor the Fed’s meeting that is expected to announce its tapering measure.

As for investment strategy, Mr. Suntarapichard recommended selective buy on defensive stocks such as power generation stocks (GPSC, BGRIM, GULF and EA) or property stocks, buoyed by the LTV measure from 4Q21 to 2022 (AP and SPALI). Meanwhile, share prices of hospital stocks also dropped to attractive prices such as BCH. TNP and IIG are small stocks that Mr. Suntarapichard expected to post positive earnings.