Mr. Phoowadol Phoosodngern, Investment Strategy Manager of the Research Department from Bualuang Securities, stated that the Stock Exchange of Thailand (SET) Index closed the morning session higher by 0.30%, or 4.21 points, at 1,411.55 points, fluctuating between positive and negative territory. Initially, the market declined in line with regional markets before buying pressure emerged.
The market was mainly pressured by Iran’s attacks on several vessels attempting to pass through the Strait of Hormuz. Despite positive news from the IEA preparing to release a record high 400 million barrels from its strategic oil reserves, oil prices have surged back to the $100 per barrel level due to concerns over war risks in the form of Proxy/Asymmetric warfare.
Although the intensity of direct combat has significantly diminished, with the U.S. and Israel having destroyed Iran’s conventional capabilities, the situation is shifting towards unpredictable developments in other sectors.
The stocks weighing down the market this morning include DELTA, AOT, MINT, CPALL, BH, and BDMS, or even PTTEP, which typically moves in line with crude oil prices. However, Bualuang Securities have observed a shift in investment towards stocks benefiting from higher commodity prices, such as the petrochemical group (PTTGC, IVL), refineries (TOP, SPRC, IRPC), and alternative energy like BANPU.
This afternoon’s trend still requires close monitoring, as it will coincide with midday in the Middle East. If there are no new unforeseen events, the SET Index is expected to remain volatile within a range, with support at 1,390 points and resistance at 1,420 points.
In terms of investment strategy, as global stock market volatility declines, although concerns persist, it is expected that investors will be more willing to buy select stocks in the next phase. Diversification into three groups is recommended:
- Stocks with prices that have fallen excessively due to the Middle East impact but still have strong fundamentals, such as PR9, GULF, CPN, KTC, and WHA.
- Stocks that benefit from high oil prices but have not yet responded, such as SPRC, TOP, PTT, and PTTGC (using portfolio hedging).
- Stocks that are not highly affected and prices have not dropped much, reflecting confidence in their fundamentals and profit direction, such as COM7, TFG, ADVICE, and MRDIYT.
The top five securities by trading value in the morning session are as follows:
- PTT PCL (SET: PTT): Trading value THB 2.57 billion, closed at THB 34.00 per share, up THB 0.50 or 1.49%.
- Delta Electronics (Thailand) PCL (SET: DELTA): Trading value THB 1.99 billion, closed at THB 258.00 per share, unchanged.
- PTT Exploration and Production PCL (SET: PTTEP): Trading value THB 1.93 billion, closed at THB 143.00 per share, down THB 0.50 or 0.35%.
- Kasikornbank PCL (SET: KBANK): Trading value of THB 1.61 billion, closed at THB 188.00 per share, down THB 1.50 or 0.79%.
- Bangkok Dusit Medical Services PCL (SET: BDMS): Trading value THB 1.19 billion, closed at THB 18.50 per share, down THB 0.20 or 1.07%.
