Daily Strategy for Investors on September 21, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on September 21, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (21 Sep) to recover in the short term after the protest on holiday (19-20 Sep) there were no violent events. As the conflict between the U.S. and China resolved, however, the market recovery has been limited by concerns over the COVID-19 situation in Europe with the increasing number of infected people until leading to the return to use the lockdown measure again. 

AWS expects this week (21-25 Sep) to remain volatile. AWS expects the SET Index to move in a range of 1,270-1,310 points. Today (21 Sep) following the Senate meeting, consider the 2021 budget draft, while the issues worth following this week are (1) The Cabinet meeting (22 Sep) considering “Kon la Krung” project and the economic stimulus package (2) (23 Sep) Follow up the policy towards financial institutions, especially the issue of dividend payment and (3) New foreign economic stimulus measures. 

According to the Investment Strategy, AWS continues to focus on its Defensive Stocks and DCA Stocks based on its Theme Investment, and AWS adds attractive stocks from the stock prices that remain laggard from the market as a new investment theme.

 

Latest reports of COVID-19 cases that increased abroad, especially European countries including Denmark and Greece announcing new control measures on Friday (18 Sep) to control the pandemic in large cities, including the possibility of England considering to take another lockdown measure after the number of people infected with COVID-19 daily average increased to 6,000 cases, an increase from the previous week of 3,200 cases per day. Initially expected the lockdown measure maybe around 2 weeks.

 

Technical View – Today, AWS expects the SET Index to move between 1,275 – 1,300 points. (Support at 1,282 1,275 and 1,269 points and resistance at 1,294 1,300 and 1,307 points). The recommended stocks are MTC, TQM, AMATA, HANA and ACE.

 

Theme Investment 

1) Laggard Stocks (Short-term Trading within 1 month) – BAM, BDMS, BEM, CPALL, GPSC, MTC and WHA

2) Benefit from a successful vaccine development and opening countries to receive tourist measure (Short term trading 1-3 months) – AOT, AAV, BA, ERW, M, CENTEL and MINT

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

4) 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

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

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