SET Index Trades Near Flat Line, Analyst Recommends Monitoring Banking Sector’s Earnings

SET Index fell 1.44 points or 0.09% to 1,578.60 points with a trading value of 16.7 billion baht as of 10:34 local time in Thailand on April 21, 2021.

 

Asia Wealth Securities (AWS) expected the SET today to move in the range of 1,565-1,590 points with a limited upside from the high number of cases of infection in the country. While the situation in the region is still a serious epidemic in India which is a large economy. Although the government has issued measures to increase confidence in the country, such as the adoption of a vaccine certificate for international travel, expanded economic stimulus measures, additional vaccines were ordered, including ready to open the city as scheduled.

 

Today, AWS advised investors to follow up on the earnings report. In particular, the banking sector (SCB announces 1Q21 performance today). In the past, the banking group’s 1Q21 announcement remained within our forecast framework. The security company also selected BBL and KBANK as top picks.

For investment strategy, AWS maintained cash of more than 50% to reduce market volatility. While investing still focuses on stocks with unique positive factors according to the Core Investment.

 

Positive factors yesterday (20 Apr) about the COVID-19 situation reduce anxiety to some extent, even though the number of infected in the country is still high (1) the Government Gazette website publish the announcement of the Department of Disease Control Subject: Certificate of Immunization Cases of COVID-19 or a certificate of COVID-19 vaccination used for international travel, effective immediately. (2) The government confirmed plans to open the country to accept foreign tourists on schedule, especially in Phuket, which will begin opening from 1 July 2021, still in accordance with the plan (3) At the Cabinet meeting yesterday (20 Apr) agreed to change the project of we win, expanding the target group to 33.5 million people (originally 31.1 million people), expanding the limit at the level of 213 billion baht (formerly 210 billion baht) and expanding spending time up to 30 June (originally 31 May) and (4) Imports 5-10 million doses of vaccines from Pfizer of Thailand by 2021 (starting July 2021).

Pfizer vaccines have a virus protection rate of up to 95%. It’s one of the best vaccines in the world. However, the situation of people infected with COVID-19 in the country remained at a high level. This week (19-20 April) saw the average number of infected people per day at 1,443, a 6% increase from the previous week (12-18 April) at 1,367.

 

Core Investment

1) Stocks that benefit from waiver for foreign property holding in the country (Short term trading 2 weeks) NOBLE, ORI, LH and SC

2) Stocks that benefit from the COVID 19 situation (Short term trading 2 weeks) BCH, BDMS, COM7, TQM, III, STA and STGT

3) Stocks that obtained benefit from EV CAR Thailand 2035 (Trading within 1 2 months) BPP, GPSC, BCPG, EA, NEX, CHO and KCE

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