Daily Strategy: CNS Expects Better-Than-Expected Bank Earnings to Support the Market

Major stock markets in Asia traded in a mixed session as investors continued to monitor COvid-19 situation in China and the development in Russia’s war against Ukraine as the U.S. eyes to step up sanctions.


As of 10:10 local time in Thailand on April 21, 2022, Nikkei rose 1.21%, SSEC fell 0.91%, Hang Seng Index dropped 1.12%, ASX200 increased 0.35% and IDX Composite gained 0.61%.

Thailand’s SET Index opened at 1,686.83 points, increased 6.48 points or 0.39%.


Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on April 21, 2022, stated that he expected the SET Index to have a same movement as yesterday without positive factors to buoy the market, while waiting for the government to cancel Covid-19 restrictions for tourist arrivals.

Meanwhile, earnings of the banking sector that were in line or better-than-expected could slightly support the market. However, the balance sheet tightening from the U.S. could pressure the market. 

Mr. Vorachet noted that the purchasing power in the Thai stock market is from the foreign investors, thus, expecting service and export sectors to outperform and recommending KCE and SAPPE for his picks. 

KCE has a target price at THB74 per share, expecting the problem of delay in production to be solved soon. As for SAPPE, Mr. Vorachet sees a resistance level at THB30-31, saying that the stock could have a very positive momentum if being able to break the resistance level on the back of positive earnings momentum.