Daily Strategy for Investors on March 23, 2021

Asia Wealth Securities (AWS) expected the SET today (23 Mar) to move within the range of 1,547-1,584 points, expecting the SET index to recover. This was supported by (1) the U.S. Bond Yield decline, (2) a rebound in oil prices, and (3) increased confidence in the vaccine after AstraZeneca reported the vaccine’s results to the corporate safety committee from an independent audit. It is effective in preventing infection, making many countries in Asia and Europe begin to use vaccines against COVID-19. However, trading still needs to be wary of market fluctuations.

For investment strategies, in the short-term, AWS recommended only speculation on stocks with unique positive factors. AWS added two important themes for investing in stocks: (1) Shares benefited from the baht depreciation (3-6 months trading) and (2) Shares that benefit from opening a country (Medium-term trading 6-12 months) while the proportion of investment, maintain a 50% cash weight ratio as AWS remained wary of risk factors. This will also give the market a chance to fluctuate during the rest of March and April.

 

The 10-year U.S. Treasury yield plunged to 1.695%, while the 30-year government bond yield dropped to 2.398% which was down from the previous week due to the concern over the Turkish financial crisis, causing strong government bond purchases which the Turkish lira was last at TRY8.4706 per USD which depreciation 15% at the close on Friday (19 Mar) after the President of Turkey Order to dismiss the Governor of the Turkish Central Bank after the Turkish central bank passed a resolution to raise the policy rate to 19.0% in order to control inflation and prevent the depreciation of the lira. Even the Turkish leader has always called for the central bank to hold interest rates low.

While Turkey is currently quashing a serious economic crisis from high debt, accounting for 174% of GDP, international reserves are low. This is due to the continuous flow of capital. Also, if the net forward position (net forward position) of Turkey’s international reserve, it is reduced and insufficient to repay foreign debt.

 

AstraZeneca released results of a vaccine against COVID-19 in the U.S. yesterday, finding that the vaccine AstraZeneca developed in collaboration with Oxford University. It is 79% effective in preventing symptomatic infection and up to 100% in preventing severe infection or must be admitted to the hospital which AstraZeneca’s report revealed that an independent security committee was conducting an audit. It noted that a total of 21,583 subjects who received at least one dose of AstraZeneca’s vaccine were not at particularly high risk of thromboembolism. The report made many Asian nations, including in Europe AstraZeneca’s anti-COVID-19 vaccine be introduced again.

 

Core Investment

1) Stocks which obtained the benefit from Thai Baht depreciation (Trading within 3-6 months) – HANA, KCE, TU, ASIAN, GFPT, CPF, STA, STGT, SAT, EPG, SMPC and MEGA

2) Stocks which obtained the benefit reopen country (Trading within 6-12 months) – AOT, AAV, BA, ERW, M, CRC, CPALL, CENTEl, MINT, BH, BDMS, SPA, MBK, NOBLE, 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