Daily Strategy for Investors on May 22, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on May 22, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Today’s Investment Overview – The SET is expected to be in the Side-way pattern. Yesterday, the SET fell in the afternoon according to European stock markets and the renewal of the Emergency Decree extending to the end of June. AWS sees those as only a small negative sentiment on investment. However, preliminary economic numbers are showing a positive signal as a result of easing of city lockdown measures.  

 

The NSC has approved the extension of the Emergency Decree to the end of June, which will be proposed to the cabinet next week. This will affect investment sentiment negligibly – Yesterday (21 May), the Office of the National Security Council (NSC) asked the government to extend the Emergency Decree for another 1 month (ending June 20). The matter will be submitted to the office of the Consumer Protection Board meeting today (22 May) and to the cabinet on 26 May. / Comment – AWS views this issue as a slight negative sentiment on investment.

 

Hope the details for phase 3 easing lockdown measures which is expected to come out next week after the situation of COVID-19 in the country continued to improve.

 

Key economic numbers signaling a rebound in May as a result of the easing of city lockdown measures – The PMI, including the U.S. preliminary manufacturing and services sectors, stood at 36.4 points, up from 27.0 points in April, while the preliminary manufacturing and services PMI for Eurozone in May increased to 30.5 points from 13.6 points in April, supported by the government in many countries of the Eurozone announced easing lockdown measures which built confidence in the overall economy that has already bottomed out.

 

The SET and TFEX prepare to extend the period to revise the Short Sell criteria from the end of 30 June to 30 September while listening to comments from 25 May – The SET has been revising the Short Sell criteria since mid-March, ending no later than 30 June. However, there are still uncertain factors for the overall economy and fluctuations in trading. Therefore, the SET and TFEX agreed to extend the period of temporary amendment of the regulations governing the period ending on 30 June and to ending on 30 September. However, the public hearing will be open until 25 May.

 

Technical View – AWS expects the SET index to move today in a range of 1,305 – 1,330 points (with support at 1,313 1,305 and 1,295 points and resistance at 1,322, 1,330 and 1,341 points). The recommended stocks today are TISCO, BPP, THG, AEONTS, and PTT. (Please follow details in Technical Express)

 

Theme Investment

1)Stocks which obtain the benefit from cutting the interest rate – MTC, SAWAD, KKP, TISCO, BAM, and DIF

2)Stocks which obtain the benefit from relaxing lockdown phase 2 – AWC, CRC, CPN, BTS, BEM, HMPRO, GLOBAL, DOHOME, M, AU, and COM7

3)Recovery of crude oil price – PTTEP, PTT, TOP, BCP, SPRC, and PTTGC

4)Stocks that benefit from entering rainy season- BCPG, BGRIM, CKP, GPSC, and EASTW

5)Stocks that benefit from government measure – ADVANC, BTS, BEM, CPF, CPALL, BJC, CRC, CPN, PLANB, HMPRO, OSP, and CBG

6)Long-term cumulative shares (DCA) – ADVANC, AOT, BDMS, BEM, and DIF

7)SSFx target stocks – PTT, PTTEP, BJC, CPALL, AOT, GULF, EGCO, INTUCH, ADVANC, BAM, and BDMS