Daily Strategy: AWS Expects Positive Session with Limited Impact from Russia-Ukraine Conflict

Major stock markets in Asia traded mostly higher on Tuesday as investors continued to weigh on the conflict between Russia and Ukraine after the first round negotiation reportedly reached no agreement.


As of 10:00 local time in Thailand on March 1, 2022, Nikkei rose 1.47%, SSEC gained 0.25%, Hang Seng Index dipped 0.12%, ASX 200 increased 1.13% and IDX Composite advanced 1.35%.

Thailand’s SET Index opened at 1,696.56 points, increased 11.38 points or 0.68%.


Asia Wealth Securities (AWS) expected the SET Index to have a positive response in the range of 1,680-1,705 points. After negotiations to resolve the conflict between Ukraine and Russia progress, it is not conclusive but positive signs for the next round of negotiations. In addition, AWS believed that the impact on the Asian market is limited compared to Europe and the United States, especially on trade issues. Thailand has only 4.9% and 1.0% of trade proportions with Russia and Ukraine, respectively, especially on energy, where Thailand only imports 4% of oil from Russia. This facilitates that fund flow will continue to flow into Asian stock markets, including the SET. However, AWS believed that trading will remain volatile. and still have to closely monitor the issue.

AWS weighted hospital stocks for BDMS and BH, travel-related stocks for AOT, MINT and ERW, domestic transport stocks for BEM and DMT, banking stocks for KBANK, BBL, SCB and TTB, and defensive stocks for EGCO, RATCH and GPSC.