As concerns about geopolitical tensions in eastern Europe continue growing, and domestic daily COVID-19 cases keep rising since the beginning of the year, Globlex Securities (GBS) forecasts the Thai stock market to trade sideways up between 1,675 and 1,710 points. Thus, it recommends energy plays such as PTTEP, PTT, TOP, and PTTGC, and also stocks benefiting from higher rubber prices like NER, TRUBB, and STA.
The US President Joe Biden’s national security advisor on Friday warned that Russia could invade Ukraine before end of Beijing 2022 Winter Olympics. This could end in sanctions against Russian oil and gas exports, posing a threat to global energy supplies, while the US government has urged any Americans still in Ukraine to leave “immediately.”
Furthermore, US inflation hitting its highest level in 40 years has spurred the Federal Reserve (FED) to consider a faster rate hike, possibly before March. Inflation has become a global issue, as seen by the fact that many countries’ central banks are raising policy interest rates in a bid to rein in inflation.
This week’s issues to watch include the Japanese and EU GDP reports for 4Q21, as well as China’s and the US’s CPI and PPI in January and February. Also, January’s US exports and imports, and January’s oil inventory report. Meanwhile, the US Federal Open Market Committee (FOMC) is scheduled to release jobless claims on 17 February.
For the investment theme, GBS recommends investing in equities that gain from rising oil prices, such as PTTEP, PTT, TOP, and PTTGC, as well as those that profited from the first-quarter rubber price boom due to higher global demand. The rubber glove and automotive industries, in particular, are expected to grow in demand, favoring NER, TRUBB, and STA.