Daily Strategy for Investors on February 11, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on February 11, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas :

1) The gold price has dropped and US government bond yields reflect concerns over the epidemic of the new strain of coronavirus which is still worrisome.

2) Thai baht continued to depreciate. This morning was at Bt31.285 per US dollar.

3) The Constitutional Court has decided on the draft of the budget act of 2020 which it is not void but has to go back and proceed with the resolution in agenda 2 and agenda 3. Recently, the president of the council made an appointment on 13 Feb to vote on the agenda 2 and 3 of the draft Budget Act 2020 (Expected to take no more than 2 days) before proposing amendments to the senate for approval (Expected within 17 Feb) and bring the draft to His Majesty for royal signature. Whole process is expected to be completed within Feb 2020, not later than in March 2020.

4) Trading Port returns for the first week (3-7 Feb 2020) was at 11.4%. This week, AWS recommends AOT, KKP, DIF, EA, and SEAFCO (adding EA and SEAFCO/ taking out TASCO and TU).

 

Theme Investment : 

1) Accelerate the disbursement of the government budget in 2020. AWS chooses CK (TP Bt22.00), SEAFCO (TP Bt7.30), CPALL (TP Bt94.00), KKP (TP Bt80.00) 

2) Government stimulus measures, AOT (TP Bt84.00), CPALL (TP Bt94.00) and HMPRO (TP Bt19.00) 

3) Global trade has eased and Thai baht depreciates. AWS chooses HANA (TP Bt39.00), TU (TP Bt18.40) and CPF (TP Bt33.00) 

4) Interest rate reduction AWS chooses ORI (TP Bt10.00) SPALI (TP Bt20.00) MTC (TP Bt75.00) KKP(TP Bt80.00) TISCO (TP Bt112.00) and (5) High dividend yield and defensive stock, AWS chooses KKP (TP Bt80.00) and GPSC (TP Bt97.00).

      

Weekly, AWS expects the SET will be within the frame of 1,515-1,555 points

Today, AWS expects the SET will be within the frame of 1,524-1,543 points . (Support: 1,529 1,523 and 1,520 points/ Resistance: 1,540 1,543 and 1,550 points)