Daily Strategy for Investors on April 30, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on April 30, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Investment overview – Positive factors supporting today’s investment are from (1) increased confidence in the overall economy after the Fed President’s statement (2) the reduced concerns about  COVID-19  situation after the results of the progressive treatment of COVID-19 , affecting the expectation that the global economy will recover. (3) crude oil prices have recovered in the short-term due to speculation in short-term contracts that has decreased, including the expectation that oil demand will increase due to the effect of easing the lockdown measures and  (4) increasing clarity of easing lockdown  measures in Thailand. Therefore, AWS expects the SET to have an opportunity to increase today, especially in large stocks focusing on theme investment – SSFx target shares.  

 

1) Increased in confidence in the overall economy – last night, the Fed decided to maintain the policy interest rate at 0.0% – 0.25% as expected and will maintain the interest rate until the US economy will recover and give the inflation target at 2%.

2) Concern about the situation of COVID-19  decreased after reports of test results of the treatment of COVID-19  were on target. This factor responded to the confidence that the overall economy will recover in the near future.

3) The recovery of crude oil prices in the short-term as expected is a factor supporting investment in energy stocks from expectations to see the recovery of oil demand in May 2020 , which is the month that many countries will begin easing the city lockdown measures and OPEC countries, including the G 20 , will begin to reduce the total production capacity of 13.5  million barrels per day.

4) The center for COVID-19  situation administration has resolved to open 8 locations with conditions. AWS has a positive view on investing in theme investment – stocks that benefit from government measures.  

5) Rehabilitation plan for THAI is progressing after the meeting of the State Enterprise Policy Committee resolved to consider the rehabilitation plan as approved by the Ministry of Transport and the Ministry of Finance. AWS looks it as a positive sentiment on THAI, suggesting only speculation by continuing to monitor additional clarity regarding the details of the rehabilitation plan.

 

Technical view – Today, AWS expects the SET Index to move in a range of 1,271 – 1,298 points (with support at 1,277 1 ,271 and 1,266 points and has resistance at 1,287 , 1,292 and 1,298 points). The recommended stocks today are AEONTS, PTG, KCE, ERW, and PLANB.  

 

Theme Investment

1) Domestic airlines return to operate on 1 May – AOT, AAV, BA,  and BAFS

2) Low crude oil prices – TASCO, EPG, GPSC, BGRIM, GULF, OSP, CPALL, and BJC  

3) Easing lockdown measures – ADVANC, BTS, BEM, CPF, CPALL, BJC, CRC, CPN, PLANB, HMPRO, OSP and CBG  

4) Limited downside, the company has strong cash flow – BGRIM, EGCO, GULF, GPSC, and RATCH

5) Long-term cumulative shares (DCA) – ADVANC, AOT, BDMS, BEM, and DIF

6) SSFx target stocks – PTT, PTTEP, BJC, CPALL, AOT, GULF, EGCO, INTUCH, ADVANC, BAM, and BDMS