Citigroup is bullish on sectors with visible growth, including bank, property and telecoms as they will outshine sectors like energy which have more exposure to the global economy.
For the broader market, the SET index may continue to move in a trading range amid deteriorating external growth sentiment, including Europe and China, and rising domestic political heat, the risks behind market correction from May peak, it says.
At the midsession break of 0530 GMT, the benchmark SET index edged up 0.1 percent at 1,148.59, falling nearly 8 percent from 1,247.72, the highest level in almost 16 years hit on May 3.
"We do see earnings downgrades in energy, chemical and transportation from weakening global growth outlook, and in retail and food from rising wages, but earnings upside in banks and property from buoyant private investment activities and in telco from the imminent 3G licensing," Citigroup said in a note.
The broker has a 'buy' rating on Kasikornbank Pcl, Bank of Ayudhya Pcl, Advanced Info Service Pcl , Land and Houses Pcl, Supalai Pcl and Amata Corp Pcl.
1236 (0536 GMT)
(Reporting by Viparat Jantraprap in Bangkok; firstname.lastname@example.org)