Daily Strategy for Investors on October 8, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on October 8, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (8 Oct) to be a positive sentiment from the U.S. leader returned to support the issuance of U.S. economic stimulus measures. This is a factor supporting investment in Thai and regional stock markets, which AWS expects to see the approval of the measure within this week. 

However, AWS still believes that the SET Index is still exposed to internal risks, especially for the political factors of the students assembly next week (14 Oct). 

AWS investment strategy remains the same, focusing on holding more than 50% of cash, AWS recommends investing in stocks with unique positive factors. (short-term speculation) includes (1) Increase in oil prices (PTT, PTTEP, TOP and PTTGC) and (2) Stocks that benefit from government stimulus measures, including CPALL, TU, JMART, COM7, CBG and OSP, including accumulating for long-term investment in Defensive Stock (Dividend Stock) and DCA stocks based on AWS Theme Investment.

 

The U.S. Energy Information Administration (EIA) reported a 501,000-barrel increase in U.S. crude reserves last week (ended 2 Oct) against analysts’ expectation of a reduction. The report also stated that crude reserves at Kuching, Oklahoma, where the U.S. crude futures were delivered, were up 470,000 barrels. 

The report was in line with the report by the American Petroleum Institute (API), the U.S. oil industry group, revealing that U.S. crude reserves were up 951,000 barrels in the same period. The refined oil reserves decreased.

However, crude oil prices have a short-term positive response on the impact of Hurricane Delta expected to hit the Gulf of Mexico coast this week. The latest data (7 Oct), the Bureau of Safety and Environmental Enforcement (BSEE), said energy companies operating in the Gulf of Mexico had suspended about 80% of crude oil production and it halted natural gas production by 49% due to concerns about Hurricane Delta.

 

Technical View – Today, AWS expects the SET Index to move between 1,255-1,273 with the recommended stocks are AOT, AMATA, SUPER and MTC

 

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 tourists measure (Short term trading 1-3 months) – AOT, AAV, BA, ERW, M, CENTEL, MINT, WHA and AMATA

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