Recap: As forecast by many brokerages, the SET Index broke its resistance level to hit a high of 1,113.63 points last week. Continued foreign fund inflows, a positive outlook ahead of the midyear election, and robust Asian markets all drove trade.
The index moved within a range of 1,083.73 and 1,113.63 points to close at 1,105.29 on Friday, up 1.88% from 1,084.91 points the previous week.
Foreign investors were net buyers of 7.279 billion baht and proprietary investors 1.27 billion. Local institutions were the largest net sellers, especially on Friday, at 5.9 billion baht for the week, followed by retail investors at 2.64 billion.
Big movers: Large-cap stocks remained the top players as foreigners were active investors. Banking, resources and energy, and construction materials were among the most active sectors including BBL, CPF, PTT, BANPU and SCC.
Trading volumes was driven by speculation on healthy first-quarter operating results.
CPF recorded turnover of 10 billion baht and close the week at 29.50 baht, up 10.17%. SCC closed up 5% at 377 baht, PTT gained 2.4% to 380 baht, TOP rose 2% to 85 baht, and IVL closed up 4% at 53.25 baht.
BBL led the banking sector with turnover of 9.8 billion baht to close at 176.50 baht, down 2%. SCB closed unchanged at 116.50 baht. KBANK closed at 129 baht, down 1.55%, while KTB gained 6.8% to 20.50 baht.
Newsmakers: PTT said it would make another attempt to persuade the Industry Ministry to raise the price of NGV to 14-15 baht per kilogramme from current capped level of 8.50 baht, to reflect real costs. Its shareholders last week complained the company was carrying a cost of 10 billion baht per year without compensation from the government.
PTT also announced also plans to invest in a new electricity plant in Vietnam and expects to have capacity of 6,000 megawatts within 10 years.
– Ten commercial banks reported first-quarter net profits of 38.5 billion baht, an increase of 12.5 billion or 48% from the same period last year, on higher fee-based income and healthy loan growth. The industry figure was inflated somewhat by a doubling in SCB’s net profit to reflect the consolidation of insurer SCNYL on its books for the first time under new accounting rules.
– SCB, BBL, Kasikornbank, Krung Thai Bank and Tisco Bank all lifted their interest rates following the central bank’s move to raise its policy rate by 0.25 percentage points to 2.75% on Wednesday.
Coming up this week: Investors must be cautious about profit taking this week as the SET has rallied in the past two weeks to break 1,100 points.
– The National Energy Policy Committee will meet on Wednesday to consider whether to continue capping the price of diesel at 30 baht per litre.
– The Bank of Thailand will release its monthly economic report on Thursday.
– The baht is expected to continue to strengthen in line with foreign fund inflows chasing opportunities in Thai equities and bonds.
Stocks to Watch: Asia Plus recommends companies in the real sector as it foresees solid first-quarter operating results. It also expects more fund inflows that will push up the SET index to a range of 1,118 to 1,131 points with the P/E at 13 times. Recommended stocks are PTTAR, TOP, ESSO, PTTCH, IRPC, SCC and TPIPL.
It also suggests BBL as a good fundamental stock.
United Securities recommends being overweight on energy and petrochemicals while remaining neutral in banking and telecoms and underweight in electronics and steel.
Technical view: Thanachart Securities sees the support level this week between 1,085 and 1,090 points and resistance at 1,120 points. United Securities expects the SET Index to have support at 1,075 to 1,085 and resistance at 1,120 to 1,150 points.
Source: Bangkok Post