Daily Strategy for Investors on March 20, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on March 20, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

1) Dow Jones increased 188.27 points (+0.95%), WTI crude oil price skyrocket USD4.85 (+23.8%), and the gold price increased USD1.4 (+0.99%).  

2) AWS investment strategy recommends investing in the theme investment from the least affected stocks from COVID-19 (antiviral stocks….COVID-19) and high dividend shares

3) Positive sentiment from central banks around the world in issuing measures to mitigate the risk of COVID-19 pandemic which BoE announced an emergency interest rate cut of 0.15% to 0.10% and increasing the QE limit, the ECB announced a new project in private and government securities purchases totaled around EUR750bn and the Fed has collaborated with several central banks to increase the liquidity of the dollar around the world.  

4) Crude oil prices recovered after the US announced buying more oil to store in the US Strategic Petroleum Reserve. AWS recommends PTTEP (TP Bt92.00), PTTGC (TP Bt58.00), PTT (TP Bt42.00), TOP (TP Bt65.00), SPRC (TP Bt10.85) and IVL (TP Bt31.25).

5) The risk pressuring market decreased in the short-term, but still have to closely monitor, especially the situation of COVID-19 outside of China that had an increase in the number of people infected with increasing rates and the weak economy overview, including the possibility that the US will announce measures to close the country.

 

AWS expects the SET to move within the range of 1,021 – 1,058 points (with support at 1,035 1,021 and 997 points and with resistance at 1,058 1,072 and 1,096 points).

 

Theme Investment:

1) Antiviral stocks . COVID -19, AWS chooses TU (TP Bt18.40) GFPT (TP Bt12.00) CPF (TP Bt33.00) TFG*(TP Bt5.35) BJC*(TP Bt48.00) CPALL (TP Bt85.00) and TQM*(TP Bt69.00).  2) Accelerate the disbursement of government budget in 2020. AWS chooses CK (TP Bt22.00), SEAFCO (TP Bt7.30), WHA (TP Bt4.20), and KKP (TP Bt80.00). 

3) Government stimulus measures, AWS chooses AOT (TP Bt79.00) CPALL (TP Bt85.00) BEM (TP Bt12.50) and HMPRO (TP Bt19.00). 

4) Interest rates cut. AWS chooses ORI (TP Bt9.00), SPALI (TP Bt20.00), MTC (TP Bt73.00), KKP (TP Bt80.00), and TISCO (TP Bt112.00).

5) High Dividend, AWS chooses KKP (Div.Yld.11.3%), QH (Div.Yld. 8.7%), DIF (Div.Yld 8.2%), TISCO (Div.Yld. 7.9%), BAFS (Div.Yld. 5.6%), RATCH (Div.Yld. 5.5%) and ADVANC (Div.Yld. 4.8%) *IAA Consensus