Daily Strategy for Investors on April 11, 2019

Asia Wealth Securities (AWS)has made an analysis for the trading session on April 11, 2019, stating that yesterday, Thai stock market was better than expected. Trading value improved. It is clear that there was a fund inflow, having foreign net buy at THB 1.7 billion in several industrial sectors.

AWS expects there will be a continue hiking momentum today. In addition, there will be a driven force and positive factors generated from a 1% increase in crude oil price despite the report in the increasing of the US crude inventory.

However, there was a report that the US gasoline inventory has significantly lower than analysts ‘ expected as well as a substantial reduction of OPEC’s production capacity. As a result, the refinery business is expected to recover.

 

Outstanding stocks are TOP and PTTGC. If the gasoline refining margin rebounded, SPRC will be benefitted (recommend only short-term speculation). KTC is AWS’s monthly top pick which will have an ex-dividend on April 12 and pay an annual dividend of 2018 of ฿0.80/share. Therefore, today is the last day to buy to receive a dividend.

Today’s index range is 1,650-1,670 points. AWS expects the index to move forward this month to reach 1,700 points and reach the highest level in this quarter at the estimate AWS of 1,735 points. Recommended stocks are ANAN (TP ฿6.00), QH (TP ฿3.70), GPSC (TP ฿72.00) and TOP (TP ฿90.00).

Perspective on ANAN as Pick of the Day
ANAN issued debentures of THB 4 billion to be used as capital in the business and to expand the business as planned. In addition, in 1Q19, the company has launched “Stay 2 Years for Free” campaign to stimulate sales, resulting in the company’s pre-sales of more than of Bt4bn which is higher than the target of Bt4bn. In 2Q19, there are 3 projects planned to be launched, namely IDEO Q, Phahol-Saphan Khwai which is a Flagship worth over THB 10 billion.

In addition, ANAN also focuses on recurring income from investments in 5 service apartments and has invested in a 5% stake in Dusit Thani Plc. (DTC) which has launched the Dusit-Central Park project worth over THB 36 billion on April 4, 2019.

ANAN’s price pattern resumed a short-term strength from Daily Buy Signal. If it could stand above ฿3.70/share, it will resume a medium-term strength from new Weekly Buy Signal. In addition, if it could stand above ฿3.68/share, ANAN’s price pattern will return to uptrend from the new Monthly Buy Signal.

It’s likely that ANAN’s price pattern will close above ฿3.70/share at the weekly market and close above ฿3.68/share at the monthly market, respectively. Giving ANAN’s price pattern, its first target is at ฿3.90/share and the next target is ฿4.40/share. The short-term stop loss is at ฿3.62/share (Resistance: 3.82, 3.86, 3.92; Support: 3.78, 3.74, 3.68)