Sawasdee - May 13, 2019

Tags: Sawasdee

No relief of US-China trade tension

Market outlook
US stock markets rebounded on Friday after overcompensating for the tariff hike. However, the situation remains gloomy, with no progress and this will pressure the market in this morning (DJIA-F has fallen 200 points.). Supports are 1,640 and 1,634. Resistance is at 1,655-1,660
Market strategy
We recommend gradually buy when the market moves in the range of 1,630-1,640. Pick up our May stock picks: BBL, CHG, GFPT, TRUE and TU. Buy PTTEP, TOP, IRPC, IVL when price signals rebound. Speculate in contractors aided by progress in politics: CK, SEAFCO and STEC. Leasing and IFFs & REITs which will benefit from no rate hike or rate cut; AEONTS, TISCO. Today’s technical picks: CPF and MAJOR. 
Company analysis
AAV – 1Q19: Results in line – Buy
CPF – 1Q19: Good margin pulls it far above estimates – Buy
KTB – Largest NIM expansion with more windfall – Buy
PTTGC – 1Q19: Missed on weaker product spread – Buy
QH – 1Q19: Flat YoY as expected – Buy
SAT – 1Q19: Beat on strong sales and gross margin – Buy
SCC – Buying a packaging company in Indonesia – Buy
TOP – 1Q19: Slightly below estimates – Buy
TTW – 1Q19: Good growth, as expected – Buy
WHA – 1Q19: Worse than expected; 2Q19 better – Buy