Asia Stocks Trade Higher after Fed Signals for a Faster-Than-Expected Economic Recovery

Stocks in Asia traded higher on Friday, March 26, 2021, following an overnight rebound on Wall Street.

 

As of 9:21 local time in Thailand on Friday, Nikkei jumped 1.27%, SSEC rose 0.68%, HSI increased 0.64%, ASX 200 gained 0.39% and Kospi advanced 0.55%.

Last night, Dow Jones rose 0.62%, S&P 500 increased 0.52% and Nasdaq gained 0.12%.

Yesterday, SET Index closed at 1,571.04 points, increased 0.21 points or 0.01% with a trading value of 93.9 billion baht.

 

Federal Reserve Chairman Jerome Powell on Thursday stated that fiscal stimulus from Congress and the acceleration of vaccine rollout would allow the U.S. to recover faster than expected.

 

Asia Wealth Securities (AWS) expected the SET to move in the range of 1,550-1,588 points, continuing to fluctuate from the lack of new positive factors to support investment. Moreover, the price of energy stocks may continue to decline after a significant drop in crude oil prices, including the appreciation of the U.S. dollar still indirectly affects the overall investment, combined with the original negative factors from political problems between the U.S. and China, the situation of the COVID-19 epidemic and the fact that many countries extend the lock-down time which impact on confidence on the economic recovery. As a result, the market recovery is still limited.

For investment strategy, AWS still focused on holding cash in proportion not less than 50% and focused on investment strategies in the Selective style in stocks with specific positive factors. The weight is only short-term speculation to reduce the risk of market volatility.

 

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 benefit from EV CAR Thailand 2035 measure (Trading within 1-2 months) – BPP, GPSC, BCPG and EA.

3) 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

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