Daily Strategy: FSS Recommends Reopening and Value Plays amid Revived Economic Activities in Thailand

Major stock markets in Asia traded mostly lower early Monday as global concerns over rising inflation continued to pressure the market. 


As of 10:13 local time in Thailand on May 23, 2022, Nikkei rose 0.50%, SSEC fell 0.41%, Hang Seng dropped 1.42%, ASX 200 slipped 0.03% and IDX Composite dipped 0.23%.

Thailand’s SET Index opened at 1,629.46 points, increased 6.51 points or 0.40%.


Finansia Syrus Securities (FSS) expected SET Index to move in sideways-up trends with a resistance level at 1,630 points as a gradual rise in oil prices above $110 level will support the energy sector in the Thai stock market.

The analyst saw strong domestic sentiment from reopening and easing Covid-19 restrictions by allowing the entertainment area to be opened and Thailand Pass cancellation to support tourism. 

In the meantime, the analyst recommended investors to keep a close eye on inflation rate, which could slowdown the economic recovery as the U.S. PCE will be released later this week. 

In addition, the analyst recommended reopening and value plays that have relatively low PER/PBV compared to pre-Covid level and have a potential strong 2Q22 performance.