Daily Strategy for Investors on November 6, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on November 6, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (6 Nov) to recover and move sideways to sideway up. Yesterday, it was up by 41 points (+3.43%), positive response to expectations for the U.S. presidential election results and BoE’s economic stimulus measures, while preliminary assessment of the U.S. presidential election is positive momentum for the overall investment. 

However, crude oil prices held yesterday (6 Nov) will affect the price of energy stocks. It is also a limiting factor to the further development of the SET Index. AWS recommends investing in global play while keeping the short-term risk, it still needs to follow domestic politics.

 

SET Index yesterday (5 Nov) rose. The market closed at 1,264.32 points, up 41.88 points (+3.43%). The trading value of Bt80.91bn was an increase in line with regional stock markets, a positive response to the prospect of seeing Democrat Joe Biden have a chance to win in the election of the U.S. leader, including the European stock markets which opened in the afternoon in Thailand. 

It rose on expectations to see BoE’s stimulus package to mitigate the impact of COVID-19 after England announced another lockdown measure. Joe Biden was expected to win the election of the U.S. leader, causing the acquisition of shares that benefit from Biden’s policy which is in line with the economic stimulus policy and those are shares in the Global play group as AWS suggests, energy and petrochemical, power producer group. 

Also, laggard stocks like ADVANC, CPALL and CPF, as well as some of the big banks (SCB and BBL), which had a sharp drop in stock prices earlier.

 

The markets keep up with the U.S. leadership elections officially, the latest situation, Joe Biden has a chance to win the election which Joe Biden currently has 264 votes, leading Donald Trump with 214 votes, with Joe Biden demanding six more votes to gain half a half (270 of the total of 538 votes) to win the election. 

However, it has to be admitted that the election results are likely that Donald Trump’s Republican Party will retain the majority in the Senate so this will affect Joe Biden’s corporate income tax policy because it is not approved by Congress. This will enable listed companies to continue to benefit from the tax rate reduction policy. 

This will continue to be positive for the overall investment and SET, which is likely to continue to rise.

 

The U.S. Department of Labor reported the number of applicants for first-time jobless benefits which dropped for the third consecutive week, dropping to 751,000 cases in the past week, compared with the number of applicants for first-time jobless benefits previous week at 758,000 cases.

 

Technical View – Today, AWS expects the SET Index to move between 1,240-1,278 points. The recommended stocks are BANPU, ADVANC, BBL, OSP and VNT.

 

Core Investment

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

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