Daily Strategy for Investors on December 8, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 8, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expected the SET this week (7-11 Dec) to move in the range of 1,430-1,470 points. The SET Index will be trading for only 2 days (8-9 Dec) as the market closed for trading yesterday (7 Dec) and 10-11 Dec closed on Constitutional Day and compensation holiday, according to the cabinet resolution. 

The SET Index has increased more than 255 points (+21.3%) from the end of October 2020, making it necessary to be careful with profit-taking, especially risk factors increased from (1) situation of COVID-19 infection in the country after one week of the infection found smuggled across the northern border, causing infected people to be found in many areas, including Bangkok. 

(2) Concerns about the trade situation between the U.S. and China after the U.S. House of Representatives was unanimous to pass the Holding Foreign Companies Accountable Act and (3) lower crude oil prices from concerns about the return of global lockdown measures again, allowing AWS to maintain the same investment strategy

AWS recommended gradually taking profit some shares to reduce the risk of market fluctuation while investing during this week, recommending only speculation.

 

New trade conflict between the U.S. and China has raised concerns over the investment again. Recently, the U.S. House of Representatives was unanimous to pass the Holding Foreign Companies Accountable Act. Market Consensus raised concerns that the law would remove Chinese companies listed on the U.S. stock market, including the U.S. Treasury website said the U.S. authorities have decided to boycott 14 Chinese officials because those officials played a role in disqualifying 4 opposition politicians in Hong Kong.

 

Recently, Worldometer reported the number of infected in the U.S. which has an average new infection from 180,000-210,000 cases per day, so the crude oil market has become more concerned with the announcement of stricter lockdown measures which will affect the overall economy and demand for crude oil. 

Previously, many states in the U.S., especially California and Los Angeles ordered residents to stay in residences for 3 weeks, beginning on Sunday (6 Dec), after seeing a record 30,000 new cases in one day. 

From these points, AWS believed that the issue will once again depress energy stocks after the increase in crude oil prices from the agreement of the OPEC+ meeting.

 

Technical View – Today, AWS expected the SET Index to move between 1,436-1,466 points. The recommended stocks are KCE, BJC, AU, ADVANC, HUMAN.

 

Core Investment

1) Global Play (Trading within 1 month) – PTT, SCC, PTTEP, TOP, PTTGC, IVL, CPF and TU

2) Stocks which obtained the benefit from the nearest successful of COVID-19 vaccine (Trading within 1 month) – AOT, AAV, BA, ERW, M, CRC, CENTEL, MINT, WHA and AMATA

3) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

4) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB