Asia Plus Securities research department stated that foreign fund flows continue to exit the Thai stock market, with foreign investors holding accumulated short positions of 48,269 contracts over the past 5 days and net selling for 3 consecutive trading days totaling over 5.2 billion baht. Technically, the SET index is forming a head and shoulders pattern, a negative signal, with the decisive neckline at 1,573 points. A break below would confirm a downtrend and risk a deeper correction testing support at 1,560 points, with a technical target of 1,520 points. However, to confirm a reversal, it must first break through resistance at 1,610 points. Additionally, the market faces overhang from Delta Taiwan's announcement of a convertible bond issuance worth up to 1.5 billion dollars, 2.86 times larger than the previous round and with a lower premium. Such deals have previously dragged Delta Thai down 6% intraday and 14.4% in T+3, and every 1 baht decline in Delta pulls the SET index down by about 1 point. The research department also recommends 3 standout stocks: BBL from the prolonged high interest rate environment and a PBV of only 0.6 times, ERW from the benefits of a weakening baht and the Thai Tiew Thai Plus project, and SCC from speculation on progress in the olefins business merger with PTTGC within this month.
Delta Electronics IncDelta Taiwan's up-to-$1.5bn convertible bond issuance, 2.86x larger than the previous round with a lower premium, is an overhang that previously dragged Delta Thai down 6% intraday and 14.4% in T+3.
Bangkok Bank PCLRecommended as a standout stock benefiting from the prolonged high interest rate environment and cheap PBV of 0.6x.
The Erawan Group Public Company LimitedRecommended as a standout stock benefiting from the weakening baht and the Thai Tiew Thai Plus project.
The Siam Cement Public Company LimitedRecommended as a standout stock on speculation over progress in the olefins business merger with PTTGC within this month.
Asia Plus Group Holdings PCL
