Asia Stocks Rise as Dow Jones Hits a Record High Overnight and Oil Rebounds

Stocks in Asia traded higher on Thursday, following a record high in the U.S. stock market overnight as the Fed continued to downplay inflation rates, saying it could take three years to reach the central bank’s target, while being well equipped with tools to combat the uncertainties.

 

As of 9:25 local time, Nikkei rose 1.69%, SSEC increased 0.74%, HSI hiked 1.03%, ASX200 advanced 1.04% and Kospi jumped 1.98%.

Yesterday, SET Index closed at 1,491.11 points, decreased 9.50 points or 0.63% with a trading value of 96.2 billion baht.

Last night, Dow Jones closed at 31,961.86 points, increased 424.51 points or 1.35%, making a record high. S&P 500 rose 1.14% and Nasdaq advanced 0.99%.

 

Asia Wealth Securities (AWS) expected the SET today (25 Feb) to move in a range of 1,476-1,512 points. AWS believed the stock market will reverse a technical rebound trend after yesterday (24 Feb) SET index fell following the region in the range of 0.5% -2.0%, except for the Hong Kong Stock Exchange which fell 3.0% from the results of the announcement of increase stamp duty on trading shares from 0.10% to 0.13%.

Stock market recovery has positive factors from the slower U.S. Bond Yield and rising crude oil prices are factors supporting the market, as well as the results of the announcement of the easing of COVID-19 control in the country.

AWS recommended stocks in Core Investment (stocks in the group benefiting from the vaccine and economic stimulus measures), In particular, BEM, CPF, TU, M, OSP, CPALL, HMPRO, CRC and CHG. However, decreasing in concern of rising interest rates (Pressure from inflation), investors must be cautious about selling stocks in the banking sector that were adjusted up earlier.

The security company maintained its speculative investment strategy by focusing on stocks that still have an upside in fundamentals and increased cash holding to reduce the risk from market fluctuation.

 

Meanwhile, crude oil price increases after reporting in the U.S. Oil production fell more than 10%, recommending speculation in Energy stocks.

 

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

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