Sawasdee – July 12, 2021

Tags: CPF, SCC

Upside is limited with high downside risk as daily new cases have been increasing

Market outlook & strategy
The government’s tougher COVID-19 restrictions were clarified on Friday, reducing market volatility and giving it a boost. However, we expect upside to be limited at resistances of 1,555 and 1,562. The rise in COVID-19 daily new cases is a major downside risk and may pull the market down to supports of 1,535 and 1,525. Tactically, we recommend investors buy selectively and be cautious.
Company analysis
CPF – Weaker swine unit to drag 2Q21F – Neutral
SCC – Better showing YoY and QoQ in 2Q21F – Outperform