Daily Strategy for Investors on November 11, 2020

Maybank Kim Eng (Maybank) released an analysis for the trading session on November 11, 2020, indicating the essential events in the stock market as follows: 

 

Market Summary

The SET yesterday continued rallying on positive developments of vaccines by Pfizer & BioNTEC with high progression. The SET index closed at 1,341.24 (+55.36 pts) with a trading value of THB166b (THB78b previous day). 

Foreign investors net bought Thai shares by THB18.958b. Institutional investors net bought by THB3.09b. There were net Short on SET50 Index Futures by 12,266 contracts.

 

Stock Picks & Trading Idea

PTTGC (TP THB57): Global economic recovery outlook should boost energy and petrochemical demand to further accelerate (HDPE prices and GRM are likely to increase). Coupled with undemanding valuation, trading at 0.77x PBV, this makes it more attractive for speculation.

 

Investment Theme

Foreign capital flowing in: The global stock markets have rallied, responding to the increasingly promising development of the COVID-19 vaccine from Pfizer & BioNTEC. The Thai stock market rebounded +4.3% to 1,341 points, a close above the 200-day EMA for the first time in five months. Strong buying was seen on Big Cap stocks in various sectors such as energy, petrochemicals, banking, transport and tourism. 

What is interesting is that it was found that foreign investors net bought for the second day in a row with acceleration on net buy of up to THB18.9b and the total market trading value surged to THB166b (the highest this year). 

Such figures indicate that foreign investors may increase investment weight in the Thai stock market even more after the net sales consecutively over the past 4 years, totaling more than -THB580b (in 2017, foreigners net sales of -THB257b, 2018 net sales of -THB287b, 2019 net sales -THB452b, 2020, net sales of -THB302b), as the tourism sector, the key to Thailand’s economic recovery. 

MSCI this morning announced a new round of rebalancing; 1) MSCI Global standard, new listed are DELTA and STGT while TMB and IRPC delisted, and 2) MSCI Global Small Cap, new listed are BPP, ICHI, IRPC, JMART, M, RBF, TFG, TISCO, VGI, while STPI and THAI delisted. The rebalancing will be completed within 30 Nov.

 

Investment Strategy

The SET index today is forecast to move up in a range of 1,330 support and resistance 1,355 points. Focus on stocks with a unique catalyst. Today’s ATO top picks are “PTTGC, CK and ICHI”.