Daily Strategy for Investors on July 04, 2019

Asia Wealth Securities has made an analysis for the trading session on July 04, 2019 as the following:

Thai Stock Market Today
– The SET is expected to receive good news from the fact that the FED has signaled to cut the interest rate. 
– The stress of political issue unwinds after the cabinet amended the conflicts divisibly.
– Thai Baht has improved negligibly from THB30.5 per USD to THB30.6 per USD.
– Crude oil price recovered due to the return of the US and Iran dispute.
– From Company Visit ORI, it is seen that the next 3-4 years outlook is still bright thanks to the significant increase in profit sharing from JV projects in 2020. While the revenues in 2019 are expected to climb by 14%YoY.
– SCB holds an analyst meeting today to answer the deal of SCBLIFE.
– The power plant business is likely to benefit from the strength in Thai Baht and the downtrend of the interest rate.

Investment Strategy
Asia Wealth Securities recommends to invest in Electric shares, New Gen property development shares, and Leasing: CKP, SSP, BGRIM, WHAUP, ANAN, NOBLE, ORI, KKP and TCAP.
Index range is expected to be 1,722 -1,750 points. Recommends stocks are WHAUP, ORI, and KKP.

Pick Of The Day
WHAUP (THB6.15; BUY; AWS Target price at THB8.00)
Asia Wealth expects a 2Q19 net profit of WHAUP to recover from firstly increasing the number of customers in WHA’s industrial estates and secondly,  GHECO-I power plants resume normal operations.
WHAUP sets the target for the year 2019 to increase raw water sales by 14.3%YoY and increase equity MW by 9.4%YoY. In addition, WHAUP plans to invest in Vietnam’s water supply business with an expected IRR around 12%. Asia Wealth maintains BUY recommendation with a target price of THB8.00 by discounted cash flow method.

WHAUP is strong in the short term due to the occurrence of the Daily Buy Signal. WHAUP will be strong in the medium term from the new Weekly Buy Signal when the weekly price can close above THB5.95 and WHAUP will return to the main uptrend from the new Monthly Buy Signal when the monthly price can close above THB6.10.The preliminary target is THB6.40. The next targets are THB6.75 and THB7.15, respectively.
WHAUP has a short-term stop loss of THB5.55. Asia Wealth sets a support line for WHAUP at 6.10, 6.00, and 5.85 points while setting a resistance line at 6.20, 6.30, and 6.45 points

Foreign Market:
US stock market: DOW rose 179.32 points or +0.67%, while S&P 500 rose 22.80 points or +0.77% and NASDAQ increased 61.14 points or +0.75% which all markets have statistic close to the highest in history due to FED may be decreased the interest rate to stimulate the economy after the disclosure of weak economic data, while investors focus the nonfarm payrolls which will disclose on Friday and New York market will close on 4 July 19 because of national day.

Commodities:
1) Crude oil prices: WTI: WTI for August delivery rose USD1.09, or 1.9%, to close at USD57.34/barrel; Brent for September delivery USD1.42, or 2.3%, to close at USD63.82/barrel after EIA disclosed the crude oil inventory fell into the third week and Baker Hughes disclosed that oil rigs decreased from 793 to 788 oil rigs so investors relieve concern.
2) Gold price: Gold price for the COMEX (Commodity Exchange) which will deliver in August rose USD12.9 or 0.92%, to close at USD1,420.90/ounce due to FED may decrease the interest rate on July 19 and political tensions between the US and Iran. Moreover, the president of Iran has revealed that Iran will increase the level of enrichment of the ore to be higher than the limit.