Daily Strategy for Investors on September 22, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on September 22, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (22 Sep) to drop and drop from the forecast weekly support at 1,270 points from 3 growing foreign concerns (COVID-19 in Europe / delayed stimulus in the U.S. / worries on the global financial sector), including the price of crude oil dropped on the back of concerns about oversupply. 

AWS looks negatively for energy stocks and business groups related to tourism both hotel business and the aviation business. It made the U.S. President and Federal Reserve’s (Fed) statements to a committee in Congress this week, especially the new round of stimulus is a follow-up issue. 

For investment strategy, AWS continues to focus on Laggard play, Defensive Stock (Dividend Stock) and DCA based on AWS Theme Investment.

SET announces the use of Short Sell / Ceiling & Floor on a normal basis, starting on 1 Oct : SET and the futures market starts to use the normal “Short Sell / Ceiling & Floor” criteria, where normal “Short Sell” criteria will apply higher prices or equal to the last trading price (Zero Plus Tick), while the “Ceiling & Floor” criteria will be used +/- 30% and futures market will use a normal basis, Daily Price Limit +/- 30% from 1 Oct 2020 onwards, AWS has a neutral view on this issue because it will affect the average trading volume per day, but the market will return more volatility. 

Currently, there is still uncertainty about the overall economy affected by COVID-19 despite the growing expectations of vaccine development.

 

Technical View – Today, AWS expects the SET Index to move between 1,268 – 1,289 points. (Support at 1,268 1,260 and 1,246 points and resistance at 1,281 1,289 and 1,303 points). The recommended stocks are MINT, SAWAD, ORI, KTC and EPG.

 

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