Mr. Nuttachat Mekmasin, Assistant Managing Director Securities analyst department of Trinity Securities revealed the investment direction in April 65, the first month of the 2Q22 quarter that the index tends to swing sideways to sideways down due to the lack of new factors to stimulate the market and still have to Follow 5 key issues that will affect investment this month. Therefore, it is recommended to use a “defensive” strategy, looking at the interesting gaining points of 1,630 points, which will be the area that makes the index return to the upside in the Earning yield gap (EYG) gauge once more.
In addition, the flattening yield curve is expected to continue. From this month’s inflation numbers are likely to rise significantly. This will allow growth stocks to be able to provide better returns than value stocks. In addition, it is recommended to invest in small-medium-sized growth stocks that benefit indirectly from being more cautious in people’s spending. This was reflected by the money supply in the M2 system that expanded at the highest level in almost a year.
“Thailand’s M2 situation expanded at the highest level in almost a year, similar to the 2Q20 period when small-cap stocks were active. both in terms of liquidity and rising stock prices,” said Mr. Nuttachat.
for small and medium sized stocks with attractive growth rates and upside from 10 fundamental price targets, consisting of SA, TSR, SIMAT, IP, SVOA, IT, SUN, CHAYO, LEO and AMR. These 10 are expected to be able to outperform the market and large stocks in the next 3 months.
On the side of large stocks If you have to choose to invest Considered safe stocks include: hospital group In which the share price in the past has shrunk until it has reduced the heat to some extent. In addition, market analysts are expected to gradually come out with a positive assessment of the 1Q12 performance, most importantly, a group that is already resistant to high inflation pressures. Choose BDMS, BCH, CHG, IMH is the next top pick of the group.
5 important factors this month that investors need to follow are:
1. The development of the conflict between Russia and Ukraine including economic sanctions of Western nations that will affect future inflation expectations and the price in tightening measures of various central banks
2. The development of the slope yield curve following the latest 2s10s spread of the US dropped to near 0% and Thailand made a new low of the year.
3. Global manufacturing PMI figures for March are likely to be weak, especially China, which recently posted below 50 for the first time in five months.
4. Thai and US inflation reports March is likely to increase significantly. from higher world crude oil prices This will result in people’s spending to decline in the next 5
.Publishing the minutes of the meeting Fed last round (FOMC Minutes).
