Daily Report ► Technical Wiz: Buy on Weakness ► Favorite Technical Stocks: FORTH, HFT Market Buzz Continuous Drop The SET Index lost 2.19 points to 1,500.20 points in trade worth THB44bn. The decrease was due to concern over Argentina’s debt defaults that would put pressure on stock investments, but 2Q14 earnings speculation lifted the SET Index. Factors Affecting Today’s Market (+) The U.S. labor market has recovered after the U.S. non-farm payroll rose 209,000 in July, while unemployment rates increased to 6.2%. (+) The Bank of Thailand (BOT) expects the Thai real estate sector will return to normal after the political crisis eased on the recovery of loan growth. The BOT has confirmed no signs of an economic bubble have been found in the Thai real estate sector. (-) Concern over the Federal Reserve (FED)’s interest rate hike earlier than expected on the continuous economic recovery in the U.S. (-) Concern over the European economic growth due to deflation. (-) WTI crude oil prices fell due to a higher supply. (-) Foreign investors were net sellers of equities worth THB467m (THB5.1bn for four consecutive days). (+/-) Debt defaults in Argentina and the financial problem in Portugal have become an impact on stock investment, but it has yet to create much concern. Relevant Factors • Political crisis in Ukraine and the Gaza Strip. • Expectations of economic stimulus at the European Central Bank (ECB) meeting later this week. • The Monetary Policy Committee (MPC) meeting in mid-week. • Release of China’s export later this week. Investment Strategy Drowsy Market..Dividend The SET Index is expected to decline due to the lack of outstanding positive factors on concern over the U.S. interest rate hike and the deflation in Europe that will put pressure on economic growth. However, a buy spree has slowed due to no fresh news and an unattractive valuation. Recommend buy (accumulate) stocks with high dividends.
Posted on: Mon, 04 Aug 2014 03:19:14 +0000
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