Daily Strategy: SCBS Expects Low Trading Volume prior to Long Holiday for SET Index

Major stock markets in Asia traded in a mixed session on Monday following a surge of China’s producer inflation for March that came in higher than expected.


As of 10:02 local time in Thailand on April 11, 2022, Nikkei fell 0.71%, SSEC dropped 1.92%, Hang Seng Index plunged 2.58%, ASX 200 rose 0.12% and IDX Composite increased 0.99%.

Thailand’s SET Index opened at 1,683.40 points, decreased 2.60 points or 0.15%.


China’s producer inflation for March came in higher than expected with a surge of 8.3% compared to the same period of last year, according to the official data released Monday. The figure topped economist expectations for a 7.9% increase in a Reuters poll. 


Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on April 11, 2022, expected low trading volume in the Thai stock market due to a long holiday from mid week onwards, seeing support level at 1,680-1,670 points and a resistance level at 1,700 points. 

Meanwhile, the strategist mentioned that the overall outlook is still negative to the market, having Fed’s rate hike, QE tightening and a slowdown economic recovery in 1Q22 due to rising energy prices.

Mr. Suntrapichard recommended “Selective Buy” for investors, picking stocks that have limited impact from inflation and rising energy costs, such as, CPALL, BJC, HMPRO, BDMS, BBL, KBANK and BLA. For short speculation, the strategist recommended ICHI and AAV.