Securities company(Securities)Krungsri Anticipate the trendThai stock index Today (7 July 65) swings 1,530 – 1,550 points due to concerns regarding the economic recession. With the minutes of the latest Fed meeting determined to curb inflation, the Fed is expected to rise.interest 0.50% – 0.75% in the meeting 26 -27 July 2022
In addition, slumping crude oil prices and concerns regarding an acceleration in the number of Covid-19 cases in the country will put pressure on the index. However, the purchasing powersharewith unique positive factors will help supportindexin a weak moment
Today’s Topics
- (+/-) FED Minutes Most committees back the Fed to raise interest rates to curb inflation: The Fed released minutes of its June 15-16 meeting found that most of its committees supported the Fed. move forwardinterestTo curb the spike in inflation and see it as a proper action. The Fed signaled another rate hike of 0.50%, or 0.75%, at its July meeting. However, the market did not respond very negatively to the factor as it was nothing different from Jerome Powell. The chairman of the Fed had made a statement earlier.
- (-) Oil Group – Crude oil has not recovered. dollar strength And concerns regarding contracting demand still pressure the market: WTI crude oil prices fell 97 cents, or 1%, to close at $98.53/barrel from 1) the US dollar was the strongest in 20 years, 2) worrying that a recession would pressure energy demand. and 3) workers’ protests in Norway ended and production and exports resumed normal.
- (+/-) Nonfarm payrolls track tomorrow: US labor market strength: This number will gauge the strength of the US labor market if it turns out to be better and better than market expectations. will put more pressure on the Fed Increase interest rates once more at the meeting to be held at the end of July, but if the numbers are too weak, investors will return to worry regarding a recession. In addition, the number of unemployment rates must also be reduced. Continuing or returning, similar to the number of Nonfarm payrolls.
Investment Strategy: Selective Buy
- GPSC BGRIM GULF SCGP SCC TASCO KEX benefit of weaker crude oil prices
- BDMS BH BCH CHG benefiting the trend of higher Covid-19 cases
- ASIAN GFPT KCE HANA, the export group benefited the baht depreciating
Recommended stocks today
- CPALL (Closed 62 BUY/target IAA Consensus Bt74.5) benefited from product price hikes to boost revenue and margins. The pressure on the purchasing power of people in the country has decreased. After crude oil prices began to slow down and the government tightened domestic diesel prices for another 3 months.
- GPSC (closed 65.75 BUY / target IAA Consensus Bt72) YTD share price fell heavily reflecting rising gas costs. Today’s crude oil drop is a positive sentiment, coupled with the issue of raising Ft for positive speculation among operators with a high percentage of SPP power plants.