Daily Strategy for Investors on April 29, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on April 29, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Investment overview – AWS expects the SET to continue to fluctuate in the same way as before, with positive factors supporting short-term crude oil prices, but AWS views it as speculation only. Issues need to be monitored (1) Foreign factors, AWS needs to wait for the FOMC meeting tonight. AWS believes that the Fed will maintain interest rates and (2) Domestic factors, there will be a clear conclusion about the relaxation of the lockdown measure today. AWS recommends stocks in groups that benefit from government aid measures in accordance with the theme investment.

 

1) Crude oil prices started to have limited downside. In the short-term, it is supported by the increase in demand from global lockdown easing measures, but AWS believes that oil prices are still to be low – The latest data from the US Oil Fund (USO) reported the sale of all delivery contracts in June to invest in longer-term delivery contracts, including beginning to have expectations of a recovery in oil demand from easing lockdown measures around the world, especially in the US. However, in the short-term, 1-2 months from now, AWS still believes that the price of Brent crude oil will continue to move in the range of USD15-20 per barrel, while WTI will have a discount from the falling Brent crude oil price.

2) Follow the FOMC meeting tonight (29 April) in Thai time which AWS expects the Fed to keep the interest rate at 0.0% – 0.25%.

3) At yesterday’s cabinet meeting (28 April), many projects were approved to support the theme investment, with shares benefiting from government aid measures. AWS chooses ADVANC, BTS, BEM, CPF, CPALL, BJC, CRC, CPN, PLANB, HMPRO, OSP and CBG .

 

Technical view – Today, AWS expects the SET Index to move in a range of 1,263 – 1,295 points (with support at 1,273 1,263 and 1,251 points and has resistance at 1,285, 1,295 and 1,307 points ). The recommended stocks today are KTC, SPRC, EPG, THG, and EA.