SET Index Plunges 10pts ATO in Concerns of New Covid-19 Variant

Thailand’s SET Index opened at 1,638.21 points, decreased 10.25 points or 0.62% as concerns of the new Covid-19 variant found in South Africa pressured the market.

South African scientists have detected more than 30 mutations to the spike protein, a tool that helps a virus to enter the cell. Meanwhile, the World Health Organization is monitoring a new Covid-19 variant called B.1.1.529 in small numbers of African patients. The new variant could have implications for vaccine efficacy and transmissibility.


Asia Wealth Securities (AWS) expected the SET to continue moving in the sideway to sideway down range as the risk factors have started to return to weighting 3 factors: (1) outlook of the Fed is expected to accelerate QE and raise interest rates after pressure from accelerating inflation, (2) a new round of trade war after the U.S. sanctions on 12 Chinese companies, and (3) the discovery of a new strain of COVID-19 (B.1.1529) in the South Africa: Scientists in South Africa view it as a serious concern, as many as 32 Spike Protein mutations may impair the effectiveness of vaccines.

AWS still maintained the same investment strategy, weighing the stocks in the portfolio 50% and recommending investing in core investment stocks, especially stocks that benefit from recovering domestic purchasing power, including stocks in the re-opening group that AWS recommended continuously and Selective stocks with unique positive factors in a speculative manner such as BLA, PTG, SPRC, TOP, WHA and AMATA.


Core Investment

1) Government continues to enhance EEC project (Trading within 1-2 months) – WHA and AMATA.

2) Recovery of purchasing power in the country (Trading within 1-2 months) – KBANK, TTB, ADVANC, CPF, CPALL, BJC, OSP, CBG, ORI, BDMS, BEM, ERW, MAKRO, CRC and HMPRO.

3) Earnings Play 4Q21 (Trading within 1-2 months) – SC, ADVANC, OSP, HANA, KCE, TTB, SPALI, FSMART, PACO, FORTH and APURE.

4) Dividend Play (Trading more than 6 months) – KKP, TCAP, TASCO, PSH, TISCO, SPCG, SC, WHAUP, CTW, ORI, RATCH, TVO, TTW and SPALI.

5) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, KBANK and KKP