Sawasdee – January 25, 2022


To rebound after falling for several days, pricing in the first Fed rate hike

Market outlook & strategy
The SET is likely to rebound in line with the US stock markets after they plunged upon morning before making a dramatic comeback as investors believe the market already priced in the fears of a Fed rate hike and decided to buy back. We expect the SET to recover from support zone of 1,630-1,637 and assign the resistance zone at 1,650-1,655. Breaking the resistance zone will firm the rebound. Keep an eye on the FOMC meeting today and tomorrow. Tactically, we suggest buy selectively or speculate cautiously. For the core portfolio, we recommend taking the sidelines.

Industry analysis
Bank – 4Q21: Slight beat; decent recovery ahead
Company analysis
BDMS – Preview 4Q21: Strong non-COVID services – Outperform
CPALL – Earnings have bottomed – Outperform
MAKRO – Two together are much stronger than one – Outperform