Daily Strategy: SCBS Advises Investors to Watch Out for Profit Taking after Two-Week Rally

Major stock markets in Asia traded higher on Monday following a rise in Wall Street last Friday that the PCE reports indicated slower inflation.

As of 10:13 local time in Thailand, Nikkei rose 1.97%, SSEC gained 0.54%, Hang Seng Index increased 2.01%, ASX 200 advanced 0.90% while IDX Composite dipped 0.28%.

Thailand’s SET Index opened at 1,649.00 points, increased 10.25 points or 0.63%.


On Friday, the U.S. reported a rise in the core personal consumption expenditures price index by 4.9% YoY in April, decreased from the 5.2% YoY pace recorded in March. The figure in April was in line with economist expectations of a 4.9% rise. 

Data from the Commerce Department on Friday showed that consumer spending increased more than estimated in April as households boosted purchases of goods and services in the U.S. The figure grew 0.9% YoY in April, compared to a 0.7% growth forecast.

Dow Jones closed 1.76% higher at 33,212.96 points. S&P 500 increased 2.47% and Nasdaq jumped 3.33%.


Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on May 30, 2022, stated that the Asian markets should receive positive sentiment from Wall Street last Friday, considering lower PCE in April compared to March. 

The strategist recommended that investors should be careful on the profit taking in the SET Index at 1,650-1,660 points after two-week recovery.

Mr. Suntarapichard advised investors to trade with caution as the situation of halting exports of foods or commodities from many countries could cause inflation to go even higher. 

As the market has been on a rise, the strategist recommended selective buy or laggard stocks such as CPALL (laggard), DELTA (tech trends in US), THANI and RJH. 

Index level at around 1,600 points should be ideal for accumulation, he added.