Thai stocks are rebounding today, 4 July 2024, with Bank Group Budget, Q2/67, support and resistance at 1280-1306 points.

Thailand stocks today, July 4, 2024. Innovation and part of the buying power from the banking group is a factor supporting the market which is expected to continue today. The index is expected to continue to rise due to speculation about operating results in Q2/24. The resistance levels are at 1300 and 1306 points respectively, while the support area of ​​1280-1290 points is still supported.

In the short term, the SET is still fragile and fluctuates within a narrow range. Meanwhile, overseas factors followed PMI index for manufacturing and services sectors in June, China, EU and US while awaiting clarity on domestic political factors. It is expected to expand slightly from the previous month and remain stable. Hence, the investment strategy recommends “Selective Buy”.

Investment strategy

Find the Thai stock market still weak and volatile within a narrow range. While awaiting clarity on domestic political factors and new sub-factors the investment strategy recommends “Selective Buy” across 4 themes as follows:

1. Select stocks HANA TOP BEM MINT OSP BBL SCGP AOT which are expected to benefit from cover short and have good fundamentals with ESG rating level A-AAA after starting to apply set uptic measures from 1st July 2024.

2. Choose ADVANC CPALL BDMS BBL BEM, a stock that is expected to benefit favorably from the new parent ESG fund's plan to adjust conditions by expanding the credit limit to 300,000 baht and reducing the holding period to 5 years.

3. Global Play Stocks whose earnings are expected to continue to recover and benefit from uncertain domestic economic growth (KCE SCGP recommends buying on softening after pressure from weak Chinese economic data)

4. The situation in the Middle East has started to improve. As a result, the price of Bent crude oil fell to 80-90 dollars per barrel. You can still hold oil stocks for hedging, so investors can take more risks. Therefore, we still pick upstream oil stocks like PTTEP.

Today's best picks are stocks

PTTEP sees strong oil prices as a trigger in the short term. It is a hedge against unrest in the Middle East. While operating results and balance sheets remain strong, 2Q24 profitability is expected to be good due to continued high oil prices and sales volumes. Today's recommended purchase price is no more than 153 baht.

GULF expects 2Q24 normalized profit to be the highest in history and continue to grow throughout the year. Backed by increased production capacity, the value of the upcoming 2 power plant auction is even more impressive.

Important things to follow today

• U.S. private sector employment in June rose the least since January and was below market expectations. Meanwhile, June's payrolls number rose to the lowest level since August '21. The June US services sector PMI index was the weakest since May '20 and came in below market expectations. Meanwhile, factory orders fell in May, contrary to market expectations, with weak US economic and labor numbers. It is expected that the central bank will cut the budget at its September meeting.
• EIA weekly U.S. crude oil inventories fell by 12.2 million barrels, just 680,000 barrels less than analysts had expected.
• The South Korean president has announced tax cuts for companies that increase revenue. To shareholders (increase dividend payments). Under the plan to increase enterprise value
• The World Bank cut its forecast for Thailand GDP growth from 2.8%YoY to 2.4%YoY due to lower-than-expected exports and public investment earlier this year. This has yet to add to the results of the digital wallet project, but is expected to help boost growth in the short term.
• 5M67 car production in Thailand shrank 24%YoY, 4M67 housing transactions shrank 11%YoY, FTI is concerned about slowing demand for automobiles and real estate in Thailand, which weighed on the Thai economy. Create an impact on SMEs
• The Constitutional Court has scheduled the next hearing on July 17, 2024 in the Election Commission's request to order the dissolution of the Gao branch party. From July 9