Daily Strategy for Investors on January 29, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 29, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expected the SET today (29 Jan) to move in a range of 1,452-1,487 points and forecasted the SET to continue to have negative pressure from yesterday (28 Jan), although believing there will be a chance to see a short technical rebound in the SET, but the rebound remains under pressure from: 

1) Concerns about additional concerns after delayed vaccine deliveries which will affect confidence on the economic recovery and demand for crude oil. 

2) The uncertainty of the U.S. economic stimulus package after the members of Congress have different opinions about Joe Biden’s economic stimulus limit of USD1.9tn as a factor limiting recovery. 

As a result, AWS to keep the same investment strategy by introducing to take profit on stocks that are at full value or exceeding fundamental value, focus on stocks with unique positive factors in AWS Core Investment, especially those that are expected to have a strong 4Q20 performance.

 

The European Commission plans to set measures to control the export of COVID-19 vaccine produced in the European Union after AstraZeneca announced a delay in production from its Belgian factory. The issue is of great concern to EU member states. 

The situation with the number of infected people in many countries continues to increase, causing each government to increase the intensity, including issuing measures to extend the lockdown period to control the spread which impacts on economic activities and demand for oil. 

Delays in delivery of COVID-19 vaccine of AstraZeneca deliveries to the European Union (EU) will be below target until late March due to production issues. It is expected to reduce vaccine deliveries by 60% to only 31 million doses. Pfizer Inc. is also in trouble, the company cutting COVID-19 vaccine deliveries to 50% to Europe, which will affect deliveries between the end of February to the beginning of March.

 

The U.S. Department of Commerce reported the No.1 estimate for Gross Domestic Product (GDP) of 4Q20 which states that the U.S. economy will continue to expand 4.0%QoQ and below the Market Consensus estimate of 4.3% QoQ. 

It also reported new home sales in Dec at 842,000 units, up 1.6% but below the Market Consensus estimate of 865,000 units. While the U.S. Department of Labor revealed the number of applicants for the first-time jobless benefits fell 67,000 cases to the level of 847,000 cases last week which is lower than the Market Consensus expected at 875,000 cases.

 

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