Daily Strategy for Investors on November 17, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on November 17, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expected the SET today (17 Nov) to have a positive momentum due to ongoing progress in vaccine development. However, the increase will not be as much as the previous round that Pfizer reported an effective protection against COVID-19 by 90% on 9 Nov, the Thai stock market (10 Nov) increased 55.36 points (+4.31%). 

However, AWS believed that the positive sentiment from vaccine development has continued progress, the appreciation of Thai baht and recovering crude oil prices are factors supporting the overall investment today. While the risk factors still need to monitor the situation of the domestic assembly and council meetings to consider the draft constitutional amendment (17-18 Nov). 

From the investment strategies, AWS continued to focus on Global Play and stocks that benefit from the development of the COVID-19 vaccine which will be successful in the near term according to AWS Core Investment.

 

Lastly, Moderna Inc. reported yesterday (16 Nov) that the results of a Phase III trial of the COVID-19 vaccine showed that the vaccine was effective against the COVID -19 by 94.5% higher than what Pfizer reported last week which effective in preventing COVID-19 by 90%, Moderna developed the vaccine together with the Allergy Research Institute and the U.S. National Infectious Diseases With 30,000 volunteers to participate in the project. 

While the report also states that Moderna, Inc. vaccines are conveniently delivered to remote rural areas because they can be stored in temperatures that are not very low. (Refrigerator temperature 2-8 degrees) Moderna vaccine is in the process of testing stability. It is believed that the vaccine will be more stable upon completion of the long-term test, with Moderna estimates that 0.5-1.0 billion doses of the vaccine will be produced by 2021. 

The issues raised back to weight, the possibility of disease control and resumed normal economic activity in 2021. However, the risk remains that broader vaccine delivery is subject to a number of limitations and requires a high amount of capital for management.

 

Monitor the situation of the rally in the country from the People’s Committee 2020 and many groups of people. The meeting in front of the Parliament today at 3:00 pm, although the Emergency Decree has been announced since 15 Nov, by 17-18 Nov, there will be a council meeting to consider the draft amendment to the constitution.

 

Technical View – Today, AWS expected the SET Index to move between 1,333-1,368 points. The recommended stocks are PLANB, S, PSL, GGC and GFPT.

 

Core Investment

1) Global Play (Trading within 1 month) – PTT, SCC, PTTEP, TOP, PTTGC, IVL, CPF and TU

2) Stocks which obtained the benefit from the nearest successful of COVID-19 vaccine (Trading within 1 month) – AOT, AAV, BA, ERW, M, CRC, CENTEL, MINT, WHA and AMATA

3) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW

4) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB