Daily Strategy for Investors on January 21, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 21, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (21 Jan) to increase. This week, there was a chance to test 1,560 points again after positive factors boosted (1) political concerns in the U.S. have declined after the inauguration ceremony of Joe Biden’s new president, markets have raised expectations to accelerate approval of stimulus packages. (2) recovery in crude oil prices and (3) increased confidence in vaccines. 

AWS maintains its investment strategy as before, and also recommends selling and taking profit at full value or exceed the fundamental value while a new investment round, for short-term investors, focuses on speculation on stocks with positive support based on AWS Core Investment.

 

A study by Pfizer Inc. and BioNTech indicates that the COVID-19 vaccine which the two companies developed together is effective in preventing the COVID-19 virus species found in England. The report is the first of a large vaccine manufacturer. 

While many other vaccines companies experiments are being conducted to determine the effectiveness of the COVID-19 protection with mutations. The issue creates a positive sentiment on the overall investment.

 

WTI crude for Feb delivery closed at USD53.24 a barrel, up 26 cents (+0.5%) which Positive feedback which expected that the new government to accelerate economic stimulus measures to help people affected by the COVID-19 epidemic, build the confidence in the recovery of the overall economy and the expected increase in oil demand. 

While following a report on crude oil reserves from the U.S. Government’s Energy Information Administration (EIA) on 22 Jan, Market Consensus estimates crude reserves will drop 2.5mn barrels in the past week (Ending 15 Jan). 

For the investment Strategy, AWS recommends “Trading” by choosing PTTEP (Trading, TP Bt118.0), PTT (Trading, TP Bt45.0) and PTTGC (Buy, TP Bt71.0) as the top picks.

 

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