Phillip Securities (Thailand) Plc. Market comment 26 September 07
Market Trend: Sideways trading seen w/ possible S/T rebound; downside seems limited Yesterday, the Thai stock market witnessed a mild correction on profit taking in the energy sector after oil prices steadily dropped off. We still believe that downside seems to be limited, as the positive political mood towards the general election by year-end should help temper market weakness.
Under this circumstance, the SETI is expected to remain volatile and trade sideways today, waiting for fresh market-moving factors including US and Thai economic data to be released late this week and the upcoming cabinet reshuffle. For today’s investment strategy, Selective BUY still remains in play with a focus on fundamentally sound stocks in the banking and energy sectors. Short-term trading on facts is also possible like BAY (Fitch Ratings upgraded BAY’s outlook to ‘positive’), SAMART (Overseas investment restructuring bodes well for SAMART), TTA (The Baltic Exchange’s Dry Freight Index (BDI) has been on a steady rise, up by 133 points), and SATTEL (iPSTAR signs deal with TNR Telecoms to tap into Filipino market).
Resistance: 840-842 Support: 828-824