Thailand’s stock market saw a slight uptick on Friday and a return of foreign investors, though they only injected some 716 million baht into the market.
This month, foreigners have bought 7.8-billion-baht worth of Thai stocks. This includes the 4.2 billion baht investment by CTBC Bank. Overall, foreigners are still net sellers of Thai stocks this year
The SET Index ended at 1,635.35 points on Friday, up 6.23 points with a trade value of 92.06 billion baht.
Retail investors were net sellers (-224 million baht) and local institutions were net buyers (+ 210 million baht). Foreign investors were net buyers (+716 million baht).
Despite the doom and gloom shares price of the following stocks traded at 52 weeks high
MAKRO – 56.25 baht
MCOT – 8.15 baht
HREIT – 8.95 baht
HUMAN – 11.6 baht
Issues to Watch Out – Politics and Economy
- A delicate balance in the commodity prices could be broken by China policy makers that are worried about rising costs, China being the largest buyer of crude oil
- Questions linger over Prayut’s tenure and his increasingly fraught relationship with key leaders in the ruling party (Read more here)
- New covid cases fall to lowest in weeks – a welcome news but antigen test kit numbers (not included in the RT-PCR test numbers) are at one of the highest.
- With falling new infectors and gov’t intention to reopen borders next month, following may see speculative buying.
- Airports of Thailand Plc (AOT)
- Asset World Corp Plc (AWC)
- Central Retail Corp Plc (CRC)
- Bangkok Dusit Medical Services Plc (BDMS)
- Precious Shipping Plc (PSL)
- Thoresen Thai Agencies Plc (TTA)
Here are some of the key stocks to look out for today
- DOHOME – Expects that monthly SSSG will jump 20% just on reopen. Trading on forward PER of 27x, analysts have high profit growth expectations as increased commodity prices have upped its gross margin this year.
- ADVANC will pay 447.8 million baht of compensation to the National Telecom, in exchange for partial settlement of disputes with NT, with total lawsuits coming to over 50 billion baht. This ends year of overhang and disputes and opens the door for cooperation in the future. Yet, investors expected settlement to as insignificant, and may resort to profit taking after the good news is already out. Foreigners have been net selling ADVNC each day last week.
- ASIAN – Talking up its near-term prospects on rising pet food sales and weak baht. This is a repeat PR as analysts already adjusted its profit outlook for 3Q recently. Trading at PER of 14.4x versus 14.2x of global food giant, TU, and 10.5x of CPF. 4 Buys with target price of 22.50 baht, dividend yield is 3%. High ROE of 27% is attractive.
Foreign Flow trends in:
- INTUCH – 5th consecutive day of net buying by foreigners. Its turnover has reached $120 million a day, well above last 5-day average of $84 million. On the technical it is consolidating.
- KCE – accumulation buying by foreigners. This is what contributed to net buying by foreigners last week
- SCB – the most bought Thai stock on NVDR list this year with net BUY of 12.2 billion baht. Top 2 sold stocks this year are KBANK – 21.1 billion baht, and PTTEP – 17.1 billion baht
- CPALL – 5th consecutive day of foreign selling. Year to date net buy is still at 6.2 billion baht
- Shipping Indices recovered on Friday
Stock focus by brokers
- DRT – Positive note with a BUY, high dividend yield of 6.5%
- AOT, AWC, CENTEL, MINT – Reopening of the economy next month
- M K Restaurant – Expect PER rating to rise to pre-covid level of 25x
- PTTEP – Minimal hedging loss and improving operations from rising spread make 3Q profit rise