Daily Strategy: ASL Sees PTT and OR Attractive amid Rising Oil Prices

Major stock markets in Asia traded in a mixed session as Hong Kong’s Hang Seng Index dropped more than 2% after returning from a holiday since last Friday.

As of 10:25 local time in Thailand, Nikkei rose 0.12%, SSEC fell 0.10%, Hang Seng Index plunged 2.44%, ASX 200 increased 0.57% and IDX Composite slipped 0.74%.

Thailand’s SET Index opened at 1,677.38 points, increased 9.32 points or 0.56%.


St. Louis Federal Reserve Bank President James Bullard on Monday urged the U.S. central bank to push the U.S. interest rate to 3.5% by the end of this year to slow down the 40-year high inflation, saying that it is “far too high”.

Meanwhile, oil prices continued to rise after demonstrations against Libyan Prime Minister Abdul Hamid Dbeibah shut down Sharara, the country’s biggest oil field. The outage fueled concerns of global supply shortage amid sanctions on Russian oil. 


Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities Co., Ltd., stated that the acceleration of Fed fund rate could pressure the stock markets, while SET Index would react by moving narrowly. Meanwhile, the U.S. is targeting to shun Russian oil and coal, which could result in higher oil and coal prices. 

Mr. Suktae stated that PTT and OR are very attractive due to their underperformance recently.

SET Index shows signs of weakening, Mr. Suktae said that the support level should be around 1,660 points, and if the market drops lower than the support level, it could change the trend dramatically. The resistance level is 1,680

In addition, Mr. Suktae recommended RCL (S40-41/R43-45), IMH (R21-22), ADVANC (S220/R230/240)