InfoQuest News Agency (06 March 2024)
Analysts are pointing to the direction of the Thai stock market this morning, expecting the index to remain stable. No new drivers Meanwhile, the US stock market fell after lower-than-expected ISM numbers and was pressured by a decline in technology stocks. Although China has revised its economic growth target this year to 5%, investors still lack confidence. However, the factor in the index country is likely to be price inflation which is consistently negative. We expect the Monetary Policy Committee to reduce interest rates, but the market momentum today is not great, as evidenced by the outflow of foreign investors. The support indicator is 1,350 points and the resistance is 1,365 points.
The trend of the Thai stock market is expected to fluctuate this morning and stabilize, said Mr. Chanchai Phantathanakit, Research Director at Maybank Securities (Thailand). Because today's investment climate is not very driven. Last night, every US stock index fell more than 1%, under pressure after the US Institute for Supply Management (ISM) revealed that the US services sector index fell more than market expectations. Including pressure from technology stocks. Apple Inc.'s stock price fell. Sharply. After revealing a contraction in sales in China in the first 6 weeks, 24%
While yesterday's National People's Congress meeting announced a revision to China's economic growth target, GDP is expected to grow by 5% in 2024, but investors still lack confidence. This is evidenced by a rise in the Chinese stock market but a decline in the Hong Kong stock market. The price of crude oil also fell yesterday.
However, given domestic factors, the index is likely to price in negative inflation for the fifth month in a row, as announced by the Ministry of Commerce.
Still sending signals that March will continue to be negative, this issue may increase expectations that the MPC will cut interest rates. However, there is not much momentum in the market, as evidenced by the foreign inflow that continues to flow out.
Today's investment strategy recommends individual stocks, with a focus on Value Play stocks such as BEM and SPALI.
With an indicator frame providing a support of 1,350 points and a resistance level of 1,365 points
* Investment consideration issues
– New York Stock Exchange (March 5) The Dow Jones Industrial Average on the New York Stock Exchange closed at 38,585.19 points, down 404.64 points, or -1.04%, the S&P 500 closed at 5,078.65 points, down 52.30 points, or -1.02%, and the Nasdaq closed. At 15939.59 points, down 267.92 points or -1.65%
– Asian stock markets are open today. The Hang Seng Index of the Hong Kong Stock Exchange opened the morning session at 16,167.45 points, an increase of 4.81 points, or +0.03%, and the Shanghai Composite Index of the Hong Kong Stock Exchange opened the morning session at 3,041.75 points, a decrease of 6.04%. Point, or -0.20%, while the Nikkei index opened the market at 39,792.37 points, down 305.26 points, or -0.76%.
– The Thai stock market closed recently (March 5) at 1,359.26 points, down 3.33 points (-0.24%), with a trading value of 39,683.43 million baht.
– Foreign investors sold a net amount of 2,933.73 million baht (March 5)
– West Texas Intermediate crude oil price for delivery in April. (March 5) fell 59 cents, or 0.75%, to close at $78.15 per barrel.
– The reference refining margin for the Singapore market at the last close (March 5) was $6.92 per barrel.
The baht price opened at 35.88, stable as of today. The market follows the Fed Chairman's statement – while monitoring the flow
– “Finance” reveals the standards for “virtual banks” and cooperates with the House of Representatives to consider licensing conditions within 9 months. Public companies must be prepared to open for service within one year, and the registered capital is not less than 5 billion in the first stage, and rises to 10 billion. In 5 years, the BoT opens the full standards with 7 properties to license applicants Application is open from 20 March to 19 September. Stay tuned for 3 big scholarships, “SCBX-Krungthai-Kiatnakin Phatra” cake competition participation.
– The Gold Merchants Association announced that the price of gold rose 6 times in one day yesterday (March 5), rising by 700 baht, breaking the record for “all-time highs” to reach a record high of more than 36,000 baht. Globe Securities Lex suggests keeping an eye on the numbers. The economy is at risk of recession and Jerome Powell announces the direction of interest rates. Gold price support continues to move, and “foreign brokers” indicate that global gold has a chance to rise to $2,300 an ounce.
The consumer price index (general inflation) in February 2024 reached 107.22, a decrease of 0.77% compared to February 2023, which is a continuous decline for the fifth month in a row due to the decrease in the prices of meat and fresh vegetables after the increase in production. Markets including lower diesel and electricity prices than last year due to government measures to reduce the cost of living. In addition, the February 2023 core inflation used to calculate inflation remains at a high level, as the two-month average (January to February) 2024 decreased by 0.94%, while February 2024 core inflation decreased. Fresh food and energy increased It is 0.43% compared to February 2023 and the average of the first two months is 0.47%.
– The exchange mistakenly removed shares of SP JKN and MILL, it is expected that there will be more than 6 million baht in compensation and is preparing to pay compensation to investors, with the aim of discussing with Nasdaq, the owner of the system, for compensation. Understand better. Stressing that such incidents will not happen again.
*Today's featured stocks
– CPALL (Ira) target “buy and gradually accumulate” is 60.00/64.00 baht. We still like CPALL's Q1 2024 earnings momentum, although it is expected to contract on a quarterly basis from the season, but continues to grow year on year after SSSG Qtd continues to decline recover. Looking ahead to the economic stimulus measures that the government will take in the second and third quarter of 2024, this is expected to continue to support the upward trend in earnings. Technically, prices have weakened, approaching the support level at the previous downtrend line and are trying to recover. Meanwhile, MACD and SSTO technical instruments are still slowing down.
– WHA (Krungsri) “buy” target is 5.40 baht. There is good news. KIA, a major South Korean automaker, is accelerating negotiations with the Thai government to build an electric vehicle (EV) production plant in the country. The US President supports the group's electoral battle at the end of this year. More Chinese capital will move production bases to Thailand if Trump wins the election.
– BDMS (Finansia Cyrus) “buy” with a target price of 35 baht, expecting earnings growth momentum in the first quarter of 2024 to continue well and income expected to reach a new record high. As a result, the revenue trend will grow by 10-12% in 2024, supported by still strong foreign patient revenues. The company expects revenue to grow at an average rate of 10% annually over the period 2024-2026 from the number of beds that increased from 8,600 in 2023 to 9,300 beds in 2026. With a better outlook, we have revised our expectations for regular earnings for this year. 2024-2025 will grow to 14% and 9% respectively, support level 28-27.50 baht, resistance level 29.50-30/32 baht.
By Warrenthon Sirenok/Ratchada Kongkhonthian
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