Sawasdee – May 12, 2021

To swing in the range of 1,566-1,596 with high downside

Market outlook & strategy
We expect the SET to swing in the range of 1,566-1,596 today. The market is expected to be upheld up by companies that report earnings beats and suppressed by profit-taking in DELTA, whose share price pulled back in yesterday’s afternoon session. Many downside risks are souring markets – concerns about inflation, fund outflow, rise in bond yield and local COVID-19 outbreak, so we recommend investors downsize portfolios when the market recovers. Trading should be selective in stocks with individual catalysts.
 
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Industry analysis
Petrochemicals – Aromatics chain continues to do well
 
Company analysis
AP – 1Q21: Beat on low SG&A, more extra income – Neutral
BJC – 1Q21: In line with our estimates – Outperform
IRPC – 1Q21: QoQ surge in profit as expected – Neutral
MAKRO – 1Q21: In line with estimates – Neutral
MTC – 1Q21: In line with expectations – Outperform
SCGP – Expanding food service biz capacity – Outperform
SPALI – 1Q21: Earnings missed forecast – Outperform
SPRC – 1Q21: Backed by stock gains – Underperform
TOP – 1Q21: Beats on higher GIM and stock gain – Neutral