Daily Strategy for Investors on June 23, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on June 23, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Investment Overview Today – The SET Index today has a chance to recover after yesterday (22 June), down 18.64 points (-1.36%) due to selling stocks in the banking sector and risk factors regarding valuation, causing the SET Index to continuously have profit taking, coupled with the unresolved COVID-19 situation in foreign countries. However, the situation in the country looks good which is still a factor to support investment. Recently, the CCSA prepared to propose 2 groups of foreigners who can travel to Thailand after not finding the infected people in the country for 28 days. Investment overview this week, AWS still believes that the stock market is still highly volatile. For investment strategy, AWS still recommends investing in the defensive group in AWS theme investment, such as long-term cumulative shares (DCA) and target SSFx shares.

 

The situation of COVID-19 is still risky to monitor – Especially in countries that are starting to relax the lockdown measures and the U.S. that still has the number of people infected increased to 31,496 people, with statistics worldwide having a total of 9.19 million people and death of 470 thousand people, with one-fourth of the total number of people infected and the number of deaths are in the U.S.

 

The MPC meeting tomorrow (24 June) monitors the outlook for interest rates for the rest of 2020 – Interesting issues and must be followed are the BoT’s perspective on interest rates trends for the rest of 2020 which AWS believes that there is still a chance to cut 1 more time at a rate of 0.25% while AWS expects the MPC meeting on 24 June, BoT will maintain the policy interest rate at 0.5% which AWS still believes that there is a high possibility.

 

The U.S. interesting economic data this week – Purchasing Managers Index (PMI) for manufacturing sector in June from Markit, Purchasing Managers Index (PMI) for services in June, new home sales in May, Manufacturing index in June (Fed Richmond), House price index in April, The number of people applying for weekly unemployment benefits, Gross domestic product (GDP) in 1Q20, The number of durable goods orders in May, Personal Consumption Expenditures (PCE) in May, and consumer confidence in June from the University of Michigan.

 

Technical View – Today, AWS expects the SET Index to move in a range of 1,344 – 1,364 points (support at 1,344 1,336 and 1,324 points and resistance at 1,355 1,364 and 1,376 points). The recommended stocks are PTTEP, PTG, PTT, PTTGC and PRM.

 

Theme Investment

1)Accelerate the disbursement of government investment budget – CK, STEC, SEAFCO, PYLON, and TASCO

2)Stocks that benefit from entering the rainy season – BCPG, BGRIM, CKP, GPSC, and EASTW

3)Stocks that benefit from government measure – ADVANC, BTS, BEM, CPF, CPALL, BJC, CRC, CPN, PLANB, HMPRO, OSP, and CBG 

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

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