Daily Strategy for Investors on June 24, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on June 24, 2020, indicating the essential events in the stock market as follows:

 

Investment Ideas:

Investment Overview Today – The SET Index still has a chance to fluctuate in a sideway manner without any new positive factors supporting the short-term investment. The only thing that is worth considering is the MPC meeting today. The interesting thing is the direction of interest rates for the rest of 2020. For investment strategies, AWS still recommends defensive stocks in the theme investment, including long-term cumulative shares (DCA) and target SSFx shares as before.

 

Crude oil prices decline – Crude oil prices are within the framework of the assumptions in 2020, while energy stocks have continuously increased in response to the recovery of crude oil prices until the stock price is fully valued at the fundamental factor. AWS still maintains the same view that oil prices are recovering, but it is not yet due to fundamentals that clearly support the recovery which is reflected by the GRM and the global refining rate is still low. However, AWS believes that the current GRM has relatively limited downside and expect to see a gradual recovery during 2H20, so AWS only speculates stocks in refinery groups that still have only the upside such as SPRC and BCP.  

 

The MPC meeting today (24 Jun) 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 the year which AWS believes that there is still a chance to cut 1 more time at a rate of 0.25% while AWS expects these the MPC meeting, BoT will maintain the policy interest rate at 0.5% which AWS still believes that there is a high possibility.

 

Technical view – Today, AWS expects the SET Index to move in a range of 1,347 – 1,371 points (support at 1,352 1,347 and 1,342 points and resistance at 1,361 1,366 and 1,371 points). The recommended stocks are BCH, KCE, PLANB, THG and SUPER.

 

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