Daily Strategy for Investors on November 12, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on November 12, 2019, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

The SET dropped 15.73 points, -0.96%, following the global stock market.

1) AWC’s price declined by 10.74%, affected the SET by 1.93 points.

2) All negative factors pressure the investment again, including the uncertainty of trade negotiation between the US and China, the protest in Hong Kong, and disappointed 3Q19 turnover.

3) Large listed companies’ earnings are disappointing, including IVL that posted earnings of Bt793mn, down 65%QoQ, and BANPU that experienced a loss of Bt106mn compared to a profit of Bt81mn in 2Q19

4) AWS has company update today: WHA, CK, STEC, and TASCO.

5) Investment strategy still focuses on Selective stocks with strong fundamentals.

3) Today’s index range is expected to be 1,615 -1,630 points. Recommended stocks are CPALL, TASCO, and GPSC.

 

Stock & Comment
CPALL – TP ฿94.00/share
TASCO – TP ฿32.00/share
GPSC – TP ฿97.00/share

 

Pick of the day: CPALL (BUY; AWS TP Bt94.00)

CPALL posted a good 3Q19 earnings, driven by the outstanding outcome from MAKRO. AWS sees CPALL is not just a convenience store, but is a network doing more businesses, such as Banking Agent, Online shipping business, etc. AWS believes that CPALL will benefit indirectly from the government’s economic stimulation measures like increasing the amount of the state welfare, the Taste Shop Spend campaign, as well as others schemas using for stimulating the weak economy in 2020.

CPALL remains in the uptrend due to occurring monthly buy signal, but the price is still weak in the short and medium-term from daily and monthly sell signal. When considering CPALL’s price, the main target would be Bt84.00. Moreover, is the price pattern can be closed above Bt84.00, a new high point, the next target might be Bt90.00 and Bt97.25, respectively. (Resistance: 79.50, 80.00, 80.75; Support: 78.75, 78.25, 77.50)