Today's Report

  • Sawasdee - January 22, 2020

    Battered by bad news

    Market outlook
    The SET is expected to fall this morning, reeling under the load of bad news: 1) spread of the new coronavirus. 2) 4Q19 earnings misses: BBL’s 4Q19 missed estimates but KTB’s beat. Petrochemical and oil-related stocks will be next and we expect weak earnings as well. 3) Concerns about a hiccup in the approval of the FY2020 budget after a Bhumjaithai MP admitted voting in favor of the bill without being present in the chamber. We assign support at 1,567 and 1,560. We expect a technical rebound after the SET touches the supports. Resistances are 1,580-1,590.
    Market strategy
    Moving down opens a chance to accumulate. SET at 1,560-1,570 is a good point. We suggest a mixed portfolio with stocks with a good earnings outlook, defensive stocks and laggard plays: BDMS, BTS, IVL, PTTEP (sell SPALI). Today’s picks: KKP, PTTEP.
    Industry analysis
    Petrochemicals – Lower cost; higher price implies better spread
    Tourism – Sickened by coronavirus
    Company analysis
    BBL – 4Q19: Huge gain offset by extra provisions – Buy
    KBANK – 4Q19: Beat on investment gain and provisions – Buy
    KTB – 4Q19: Beat on provisions – Buy


Morning Voice - January 22, 2020

Word focus

Dividend yield The dividend yield is the total yearly payments divided by the principal value of the preferred share