Daily Strategy for Investors on September 23, 2020

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

 

Investment Ideas:

The overall investment today – AWS expects the SET Index today (23 Sep) to have volatility despite the SET down 20.76 points (-1.6%) compared to last week. There may be a short-term recovery as a Technical Rebound, but overall investment still has risk factors from the uncertainty of the overall economy after the COVID-19 situation came back to violence in Europe until making England resumed partial lock-down measures for 6 months, but there are still factors supporting investment from the economic stimulus measures passed yesterday (22 Sep). 

Therefore, AWS recommends only speculation (Holds over 50% cash), and continues to focus on Laggard play, Defensive Stock (Dividend Stock) and DCA stocks based on our Theme Investment.

 

Positive factors in the country from the economic stimulus measures – yesterday (22 Sep), the Cabinet meeting approved (1) the economic stimulus package for the consumption sector, the amount of Bt51bn (for 3 months from October to December 2020) through 2 projects which are “The Project to Increase Purchasing Power for Persons with the State Welfare Card” (Bt21bn) by increasing the amount of the State Welfare Card (There are 14 million right holders) for necessary consumption Bt500 per person and “Half Pay Project” (30 billion baht), which the state co-pay for 10 million people, not more than Bt3,000 for each person to reduce expenses with the target group will be helping small entrepreneurs (hawker, stalls and convenience stores, but exclude the franchise business). 

(2)The economic stimulus measures for the tourism sector with the announcement of two special holidays: which are 19-22 Nov 2020 (add a special holiday 19-20 Nov) and 10-13 Dec 2020 (postpone holiday on 7 Dec to 11 Dec.) to support the “We Travel Together” project. From these points, AWS looks at both economic stimulus measures as positive for CPALL, MAKRO, AOT, AAV, BA, ERW, M, CRC, CENTEL, and MINT (this is AWS recommended stock in the Theme Investment).

 

Technical View – Today, AWS expects the SET Index to move between 1,262 – 1,281 points. (Support at 1,262 1,256 and 1,249 points and resistance at 1,268 1,274 and 1,281 points). The recommended stocks are GLOBAL, CBG, ACE, AMATA and TKN

 

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