Daily Strategy for Investors on October 29, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on October 29, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (29 Oct) to continue volatility from yesterday (28 Oct) due to negative foreign factors. In particular, the situation of the COVID-19 pandemic in the U.S. and Europe has led to the announcement of a step forward in the prevention of COVID-19 measures in France and Germany after finding the death rate from COVID-19 across Europe rose nearly 40% in a week, aggravating overall investment, which remained negative due to delays in the issuance of economic stimulus measures. 

 

However, the positive factors in the country are the internal political situation that reduced the heat along with the 3Q20 earnings announcement of large companies such as PTTEP and SCC which are expected to remain strong.

 

For investment strategy, AWS recommends reducing your investment portfolio to reduce the risk, focusing on investing in AWS Core Investment portfolio. In the short-term, recommend speculation in stocks benefiting from the decline in crude oil prices. In the long-term, recommend gradually accumulating Dividend play and DCA stocks.

 

The U.S. Government’s Energy Information Administration (EIA) reported a 4.3 million barrel increase in the U.S. crude reserves last week. (Ending 23 Oct) which more than the Market Consensus previously estimated that it would only increase by 200,000 barrels, causing the crude oil market to worry about the oversupply situation.

 

Also, the Oil prices have also been pressured by concerns over the coronavirus situation which will make the country return to announce lockdown measures so this will affect the world economy and demand for oil. 

 

The latest data from Worldometer shows that there are now 44.7 million people infected worldwide, with the US still having the largest increase in new infections daily, on average. 75,000-80,000 people per day. While Europe remains France, Italy, Spain and Germany, the number of new infections continues to rise in the Top10, and in England and India. 

 

The strategy for investment, choose to invest in stocks that benefit from falling crude oil prices following AWS Core Investment.

 

Technical View – Today, AWS expects the SET Index to move between 1,190-1,233 points. The recommended stocks are PTG, SPCG, STA, INET and SAWAD

 

Core Investment

Benefit from lower crude oil price – CK, ITD, STEC, UNIQ, SCC, TOA, TASCO, GULF, BGRIM, GPSC, EPG, OSP and BJC

Dividend Play (Middle-term trading 6-12 months) – KKP, TISCO, QH, LH, SC, ORI, NOBLE, DIF, INTUCH, HANA, SCCC, EASTW and TTW

Long-term accumulative stocks (DCA) (Long-term trading over 1 year) – ADVANC, AOT, BDMS, BEM, CPALL, DIF and PTT

CORE INVESTMENT