Most stocks in Asia fell on Tuesday, tracking losses on Wall Street last night, with Japan’s Nikkei index leading losses, as investors await this week’s US inflation report and China GDP report.
Meanwhile, Thai equities dropped further in the afternoon session on a widespread sell-off ahead of tomorrow’s market closure.
Inflation in the United States, which is due out on Wednesday, is forecast to reach 8.8% YoY in June, up from 8.6% YoY in May, indicating that inflationary pressures linger, whereas Fed is expected to raise interest rates by 0.75% (most likely) or 1% (less likely) during the July 27 meeting.
Since volatility remains in the Thai market, Asia Plus Securities recommends keeping some cash and buying stocks that benefit from positive factors, with top picks being SPALI, KBANK (benefiting from interest rate hike), and OSP (good immunity to inflation).
Supalai Pcl. (SET: SPALI) (TP: THB26.90)
Kasikornbank Pcl. (SET: KBANK) (TP: THB174.00)’s 2Q22 profit is expected to grow 3% QoQ (net interest income is driven by loan growth) and 30% YoY (lower provision).
Osotspa Pcl. (SET: OSP) (TP: THB37.00)’s 2Q22 profit is expected to grow QoQ and YoY. Production is expected to improve after packaging ramp-up (lighter glass bottle).