Daily Strategy for Investors on December 9, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 9, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expected the SET today (9 Dec) to test the 1,500-point level on the positive side of (1) Continued capital inflows (2) The appreciation of Thai baht currency (3) Additional stimulus measures (Thailand, China and Japan) and (4) Progress on COVID-19 vaccine. 

However, BoT’s more periodic stance on the sharply strong baht trend remains to be followed, which may lead to the need for the BoT to introduce tighter currency controls. This may limit the SET’s recovery this time. Although AWS believes that the funds flow entering the market and the progress of the vaccine increases which will still be supporting factors, the SET Index was up 24% from the end of October 2020. 

AWS maintained a cautious investment strategy, recommending selling some shares or full value while new investment round, recommend only speculation.

 

The U.S. Food and Drug Administration (FDA) summarized the results of the Pfizer-BioNtech COVID-19 vaccine assessment, according to clinical trial data, efficacy and safety criteria passed, however, the FDA will review the results of the study at a committee meeting on Thursday (10 Dec). If approved, the vaccine will begin to be distributed as early as possible by the end of the week.

 

The latest baht is at Bt30.13 per USD, appreciated Bt0.031 per USD so it make 4Q20QTD baht appreciation over 4.8% (data from the Bank of Thailand website: BoT) due to the result of BoT’s control measures for the baht before that were not very strict. 

However, BoT is now taking a more restrictive stance towards the Thai baht, so today (9 Dec) has to follow up with BoT’s additional measures to control the baht.

 

The Cabinet has approved the measures for “Half Half” of the second phase as proposed by the Ministry of Finance. (open for registration on 16 Dec), divided into 2 groups which are (1) The original licensee not more than 10 million people will receive an additional Bt500 per person on 1 Jan 2021 (The original credit limit of Bt3,000 increases to Bt3,500) can be used until 31 Mar 2021 and (2) New registrants not more than 5 million people will be entitled to Bt3,500 per person for spending from 1 Jan to 31 Mar 2021.

 

Technical View – Today, AWS expected the SET Index to move between 1,455-1,496 points. The recommended stocks are PLANB, MTC, TCAP, EASTW and SPA.

 

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