Daily Strategy for Investors on April 1, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on April 1, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

1) Dow Jones and Commodity yesterday – the Dow Jones market fell 410.32 points (-1.84%), WTI crude oil price was up 39 cents (+1.9%) and gold price dropped USD46.6 (-2.84%).   

 

Today’s investment overview, AWS believes that the SET Index might fluctuate in a downtrend direction due to profit taking after the SET yesterday greatly rose according to regional stock exchanges and speculation on large stocks that AWS expected yesterday. Before the SSF begins today, the risks that still pressure the investment overview come from the unresolved COVID-19 situation, which the fundamental perspective is similar to the technical perspective.

 

2) Crude oil prices were not very positive although the US and Russian leaders agreed in a negotiation to stabilize the oil market. This morning, crude oil prices resumed to fluctuate in negative territory, which was a factor affecting stock prices in the energy sector today.  

3) The COVID-19 situation is still worrisome, especially in the US. The number of people infected yesterday rose to 23,599 cases, bringing the total to 187,347 cases. New York became the center of pandemic (There are as many as 40,000 people). There are 856,917 people infected worldwide. While The number of people infected in Thailand is at 1,651 (127) / 10 (1).

4) SSF mutual funds begin today (1 April). However, yesterday, AWS saw strong buying in stocks that AWS expected to be the investment target of SSF, so SET greatly increased yesterday. Although AWS believes that the SSF will support the stock market according to the special SSF, which has to invest at least 65% in Thai stocks, AWS recommends to be cautious about selling in the short-term from the negative factors of the weak fundamentals of oil prices and the severity of the situation COVID-19

5) Economic statistics for today (1 Apr), Manufacturing PMI from ISM report for March (February was at 50.1 points / March was expected at 45 points), while the number of weekly US unemployment benefits and the unemployment rate for the US in March will report on 2 and 3 April.

 

Today, AWS expects the SET to be with the range 1,111-1,143 (Support at 1,120 1,111 and 1,096 // Resistance at 1,134 1,143 and 1,158) which the recommended stocks are CKP, KTC, AWC, BANPU, and AMATA (Follow in the Technical Express analysis).

 

Theme Investment: 

1) Slightly affected stocks from 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) Down side limiting and strong cash flow, AWS chooses BGRIM (TP Bt59.00) EGCO (TP Bt358.00) GULF*(TP Bt164.00) GPSC (TP Bt82.00) and RATCH*(TP Bt72.25). 

3) Stocks which obtain the benefit from work from home measure, AWS chooses ADVANC (TP Bt250.00) INTUCH*(TP Bt76.75) DTAC*(TP Bt48.50) TRUE*(TP Bt4.50) DIF*(TP Bt17.20) and COM7*(TP Bt28.50). 

4) Stocks for long-term investment (DCA), AWS chooses ADVANC (TP Bt250.00) AOT (TP Bt79.00) BDMS (TP Bt27.50) BEM (TP Bt12.50) and DIF*(TP Bt17.00).  

5) Defensive & high dividend, AWS chooses KKP (Div.Yld. 15.9%) QH (Div.Yld. 9.3%) DIF*(Div.Yld 8.2%) TISCO (Div.Yld. 8.7%) INTUCH*(Div.Yld. 6.2%) TTW*(Div.Yld. 4.8%) and RATCH*(Div.Yld. 4.2%). 

 

*IAA Consensus