Daily Strategy for Investors on January 19, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 19, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (19 Jan) to move within the range of 1,495-1,522. The SET Index remains volatile, especially the issue of the U.S. dollar appreciation after the Minister of Defense Under Joe Biden government, monetary policy will be implemented in accordance with market forces, including the possibility of a likely Fed rate hike that may be faster than expected. 

While this week, the bank’s earnings report remains to be monitored, including the ECB and BOJ meeting (21 Jan) this week. 

For investment strategy, AWS recommends selling and taking profit at full value or exceeding the fundamental value. While new investment rounds, for short-term investors, focus on speculation. While the medium to long-term investors, waiting accumulate as the SET falls 1,490-1,510 points in positive stocks as AWS Core Investment.

 

It is likely that the new President of the U.S. will cancel the project to build Keystone XL crude oil pipeline for environmental reasons which the project is under construction and is expected to be completed by 2023 with project value is USD9.0bn. 

It is a crude oil pipeline project from Alberta in Canada to Nebraska in the U.S, carrying 0.83mn barrels per day which the project received opposition from President Obama. While such projects are possible, Mr. Joe Biden that the President of the U.S. will cancel due to wanting to reduce the energy dependence on Fossil Fuel in the U.S. which the U.S. will return to a member of the Paris Agreement to fight global warming. (The Trump government withdrew earlier). 

From these points, AWS views the short-term and long-term impact on crude oil prices rather limited from such cases due to the project is still under construction. Therefore, it does not affect the supply in the U.S. market while crude exports from North America are still difficult due to logistic issues, it could hurt the U.S.-Canada relations.

 

Core Investment

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

2) Green energy stocks (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG, EA and ACE

3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – BBL, KKP, BEM, CPF, TU, M, OSP, CPALL, HMPRO, CRC and CHG

4) Stocks which expected that the performance in 4Q20 will outstand (1-2 months) – SAWAD, GULF, SPALI, ORI, WHA and STA

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

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