Daily Strategy for Investors on April 27, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on April 27, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Investment Overview – AWS expects the SET to remain volatile sideways. AWS believes that the 4 factors that will determine the direction of investment this week are (1) Crude oil prices (2) FOMC meetings and major central banks such as the BOJ and ECB. (3) Thailand’s 1Q20 earnings report and (4) The announcement of mitigation measures for urban lockdown and COVID-19 control measures.  

 

– AWS recommends investing in the short-term theme investment which are (1) aviation-related businesses, thanks to domestic airlines returning to be available from 1 May (2) stocks that benefit from low crude oil prices and (3) stocks that benefit from easing lockdown measures.  

 

– AWS sees the Brent crude oil price in the short term to remain within the range of USD20 – 25 per barrel – after fluctuations in the past 2 weeks, especially during the changing WTI oil contract from May to June. AWS sees this week the crude oil prices might have less fluctuations to be about USD20-25. WTI crude oil may still have discounts from Brent crude oil approximately USD4-5 per barrel. Meanwhile, AWS remains pessimistic on the fundamentals of crude oil prices.

 

– Add a new investment theme – Domestic airlines return to be available from 1 May – AOT, AAV, BA, and BAFS.

 

– Keep an eye on interesting earnings reports this week, including SCC (29 April) and PTTEP (30 April).

 

– Follow important US economic data, such as the 1Q20 GDP report and the April consumer confidence index report, while the BOJ and ECB meeting, the EU 1Q20 GDP report, and the Chinese manufacturing and service PMI index in April also need to be monitored.  

 

Technical view – AWS estimates the SET frame this week (27 – 30 April) at 1,234 – 1,305 points. AWS expects the SET Index to move today in a range of 1,250 – 1,273 points (with support at 1,250 1,241 and 1,226 points and has resistance at 1,264, 1,273 and 1,289 points. The recommended stocks today are THG, MBK, CENTEL, STA, and SPRC.