Daily Strategy for Investors on September 15, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on September 15, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – Despite the positive factors from the resurgence of vaccine development, but AWS believes this is not enough to support the SET Index’s clear recovery today (15 Sep), partly due to weak fundamentals which reflected in the downgrade of crude oil demand estimates as a result of the COVID-19 situation that still has continued to spread.

Meanwhile, foreign negative factors, especially the Brexit case, the uncertainty in British-EU negotiations and the conflict between the U.S. and China on so AWS expects the SET in this week (14-18 Sep) to move in a side-way down so the strategy for investment, AWS weighs the Dividend Play and DCA stocks.

 

OPEC cuts its 2020 crude oil demand forecast to 90.2 million bpd, down 400,000 bpd based on the previous estimate so the 2020 oil demand decreased by 9.5 million barrels per day when compared to 2019. Also, the OPEC reviewed oil demand forecast in 2020 as OPEC believes the demand will remain weak during 1H21 due to COVID-19 cases which are constantly increasing, especially in India and Brazil, including most countries in the Asian region.

However, there is still short-term support from the Hurricane Season in the U.S. after Hurricane Sally was reported that it increases the severity of level 2 and is likely to become a level 3 hurricane.

Technical View

Today, AWS expects the SET Index to move between 1,267 – 1,282 points. (Support at 1,267 1,260 and 1,250 points and resistance at 1,276 1,282 and 1,293 points). The recommended stocks are EPG, SUPER, BJC, TKN and TVO

 

Theme Investment

1) Benefit from a successful vaccine development in the near future (Short term trading 1 month) – AOT, AAV, BA, ERW, M, CENTEL and MINT

2) Benefit according to the season (Short term trading 1-2 months) – BGRIM, CKP and GPSC

3) Benefit from the stimulus package (Short term trading 1-3 months) – CPALL, CRC, HMPRO, BJC, OSP, CBG, MTC, CK, BEM, SEAFCO, PYLON, TASCO, COM7 and WHA

4) Dividend Play (Middle term investing 6-12 months) – KKP, TISCO, QH, LH, ORI, NOBLE, DIF, INTUCH, HANA, EASTW, TTW, EGCO and RATCH

5) Long-term cumulative shares (DCA) (Investing more than 1 year) – ADVANC, AOT, BDMS, BEM, CPALL, DIF and PTT