Asia Plus Securities (ASPS) recommended a selective accumulation strategy focusing on stocks with unique catalysts or those benefiting from commodities. Today’s top picks include PTT Exploration and Production Public Company Limited (SET: PTTEP), SCG Packaging Public Company Limited (SET: SCGP), and Bangkok Bank Public Company Limited (SET: BBL).
Additionally, the brokerage advised investors to look for opportunities to accumulate depositary receipts (DRs) of Chinese stocks, as their valuations remain attractive and are targets for fund inflows. Examples include BABA80, TENCENT80, XIAOMI80, XPENG80, and ZIJIN80.
Meanwhile, ASPS noted that the global financial markets are entering a period of extreme volatility due to the escalating conflict between the United States and Iran, which has destabilized the temporary ceasefire agreement.
Most recently, the U.S. launched consecutive attacks on Iran for a second straight day and revoked Iran’s oil export privileges. Furthermore, President Donald Trump has threatened to blockade ports and strike critical infrastructure, prompting Iran to declare its readiness to retaliate immediately.
These developments have heightened concerns over the direction of oil prices, especially since over 20% of global oil must transit through the Strait of Hormuz. The risk of renewed supply disruption could drive oil prices sharply higher, potentially accelerating global inflation and increasing the chances that the Federal Reserve (Fed) will reconsider raising interest rates.
The risks posed by war and interest rate trends have prompted aggressive profit-taking in technology stocks that had previously outperformed the market, particularly memory chip makers like Micron Technology, which plunged 21.8% in just eight trading sessions, and SanDisk, which dropped 26%, firmly entering bear market territory.
Conversely, capital flows are shifting out of markets that previously surged—such as South Korea’s, which has dropped over 12% since the start of the month—into lagging markets like China and Hong Kong. The Hang Seng Index has rebounded by 5.8% since the beginning of the month.
Additionally, Chinese equities have received positive momentum from the announcement that major Chinese banks, like ICBC, will suspend retail paper gold trading starting July 24. This move aims to curb speculation and reduce credit usage, supporting the stability of the yuan and drawing capital back into Chinese stocks and gold-backed equities.
