Daily Strategy: KSS Warns of Energy Stocks Selloff and Profit Taking at 1,720 Index Level

Major stock markets in Asia traded in a mixed session on Monday morning as oil prices extended losses early morning.

As of 10:11 local time in Thailand, Nikkei slipped 0.14%, Hang Seng Index rose 1.17%, ASX 200 increased 0.30% and IDX Composite dipped 0.13%. Markets in China are closed on Monday and Tuesday.

Thailand’s SET Index opened at 1,705.28 points, increased 3.97 points or 0.23%. 


Oil prices extended losses on Monday as investors continued to monitor the release of strategic oil reserves from major consuming nations such as the United States of America. Meanwhile, a two-month truce in Yemen could also ease supply disruption concerns in the Middle East as well. 

In the morning of Asian trading session, Brent crude dipped 0.48% to $103.89 per barrel, and West Texas Intermediate fell 0.33% to $98.94 per barrel.


Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), through “Kaohoon Jor Talad Program” on April 4, 2022, stated that the Thai market outlook remains positive, but the decline in crude oil prices could be a short-term negativity for the market that leads to a selloff in the energy sector. Meanwhile, there could be another profit taking once the index level reaches its previous high of 1,720 points. 

As for investment strategy, Mr. Jiwangkul is positive on the reopening theme on the back of an increase in tourist arrivals after easing Covid restrictions for international arrivals. Hotel (CENTEL) and aviation (BA) stocks should be the main focus in 2Q22 for the reopening theme. Meanwhile, energy stocks such as GPSC or BGRIM should be pressured by 1Q20 performance due to gas prices, but should recover in 2Q22.