Daily Strategy: KSS Says Thai Stocks Still Being Pressured by External Factors

Major stock markets in Asia traded lower on Wednesday, following the plummet in Wall Street last night that sent Nasdaq into the bear market. However, stocks in China and Hong Kong rebounded in the late morning.


As of 10:25 local time in Thailand on April 27, 2022, Nikkei fell 1.88%, ASX 200 dropped 0.50%, IDX Composite decreased 0.42%. Meanwhile, SSEC rose 0.33% and Hang Seng Index gained 0.25%.

Thailand’s SET Index opened at 1,668.50 points, decreased 0.47 points or 0.03%.

Yesterday, Nasdaq Composite closed 3.95% lower on Tuesday, the worst drop since September 2020, as investors digested the latest round of corporate earnings. The index is now down 20% this year, marking the beginning of a bear market.

Meanwhile, S&P 500 plunged 2.81% after reporting YoY earnings growth of 6.6% for 1Q22, which would be the lowest growth since 4Q20.


Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), through “Kaohoon Jor Talad Program” on Wednesday expected the Thai stock market to follow the movement in other Asian markets, pressured by Fed’s aggressive rate hike, war in Ukraine and a lockdown in China. The latter two could cause global economic growth to slow down.

Mr. Jiwangkul maintained his positive view on reopening stocks, seeing higher tourist arrivals as of late and recommending BH (FV THB197). Meanwhile, rising gas prices are still pressuring power generation stocks (GPSC, BGRIM and GULF), recommending investors to wait and see how the situation turns out as 1Q22 is still weak. 

PTTEP and TOP should benefit from rising oil prices, while SPRC is still attractive over rising gross refining margin that should carry on to 2Q. However, PTTGC and IRPC should be pressured by lower margin, recommending IVL instead for stocks in the petrochemical sector.