Daily Strategy for Investors on April 17, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on April 17, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Investment overview – Thai stock market is still volatile, but AWS believes that it will return to be positive again today. The positive factors come from the improved domestic and international COVID-19 situation, including the case of pharmaceutical companies in the US testing for COVID-19 antidepressant drugs which is effective. AWS is optimistic for the investment sentiment with the expectation that the economy will recover and is a factor that stimulates crude oil demand again. AWS recommends speculation in energy stocks such as PTTEP, TOP, PTTGC, and SPRC. For ICT groups, AWS chooses ADVANC and the transportation sector, AWS chooses BEM, AOT, and BTS. However, AWS still closely monitors the COVID-19 situation because there is still a risk that the stock market will become more volatile.  

 

1) News from foreign countries that increase investment weight this morning: (1) The US, according to health magazines, reported that the test results of Remdesivir are effective in treating COVID-19 patients and the US leader announced to return to open the economy again. Currently, the Boeing plant has resumed production at some point, and (2) the European Union (EU) proposed a master plan for member countries to abolish the COVID-19 pandemic control measures.

2) The US department of labor reported the number of Americans applying for unemployment benefits for the first time increased by 5.245 million cases in the past week (expected to increase 5 million cases) but lower than the previous week at 6.615 million cases. Meanwhile, the March’s economic indicators, which will be disclosed by the Conference Board, will be released today (17 April) at 9.00 p.m. according to Thai time.

3) China’s economic issues to be monitored today (17 April), they will reveal the GDP figures during 1Q20 that the market is estimated to be -6.5%YoY and -9.9%QoQ compared to 4Q19 where China’s GDP was at 6%YoY and 1.5%QoQ.  

 

Analyst Comment – In the case of the NBTC requesting to reduce the price of mobile service providers by just 5%, much lower than expected so AWS still chooses ADVANC as a Top Picks. Also, AWS has a positive view for ICT sector which AWS estimates that if the service fee is reduced by 5% in 3 months, the revenue from the mobile business will be negligible about 1-2%, which was offset by financial gain from internet promotion measures. AWS selected ADVANC (TP Bt250.00) as Top Picks.  

 

Technical view – Today (17 April) AWS expect the SET Index to move in the frame of 1,180 – 1,220 points (with support at 1,190, 1,180 and 1,159 points and resistance at 1,210 1,220 and 1,241 points). Recommended stocks today are KBANK, TASCO, CPALL, BGC, and CPF (follow in the Technical Express report).

 

Theme Investment: 

1) Slightly affected stocks from COVID-19, AWS chooses TU, GFPT, CPF, TFG, BJC, CPALL, and TQM. 

2) Down side limiting and strong cash flow, AWS chooses BGRIM, EGCO, GULF, GPSC, and RATCH.

3) Stocks which obtained the benefit from work from home measure, AWS chooses ADVANC, INTUCH, DTAC, TRUE, DIF, and COM7. 

4) Stocks for long term investment (DCA), AWS chooses ADVANC, AOT, BDMS, and DIF. 

5) SSFx target stock, AWS chooses PTT, PTTEP, BJC, CPALL, AOT, EGCO, INTUCH, ADVANC, BAM and BDMS.

6) Defensive and high dividend, AWS chooses KKP (Div.Yld. 15.9%) QH (Div.Yld. 9.3%) DIF*(Div.Yld 8.2%) TISCO (Div.Yld. 8.7%) INTUCH*(Div.Yld. 6.2%) TTW*(Div.Yld. 4.8%) and RATCH*(Div.Yld. 4.2%) *IAA Consensus