Daily Strategy for Investors on December 2, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 2, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expected the SET today (2 Dec) to move in the range of 1,405-1,437 points. The SET Index still has a positive sentiment from capital inflows, continuous appreciation of the baht, including positive factors from global economic stimulus measures, especially in the U.S. that has progressed. This includes applying for approval for many large pharmaceutical companies in Europe as a supporting factor. 

However, investment still needs to be cautious because the uncertainty from the OPEC+ meeting will cause the crude oil price to fluctuate, including the Fed and OECD’s view that is negative on the overall economy and downgrade the world GDP forecast in 2021. 

AWS maintained the same investment strategy. For investors who hold stocks in the past 1 – 2 weeks, recommend gradually taking profit from some stocks to reduce the risk of market fluctuation while investing during this week, recommend only speculation.

 

OPEC+ postponed the meeting to 3-4 December after having highly conflicting opinions regarding oil production policy in 2021 which remains closely monitored, but AWS believed that crude oil prices will remain volatile from the uncertainty of the meeting resolution despite the depreciation of U.S. dollar will be a factor supporting commodity prices. 

In addition, it needs to follow the U.S. Energy Information Administration (EIA) crude oil reserve which is scheduled for today (2 Dec) at 10:30 p.m. Thai time while Market Consensus estimates crude reserves will drop by 1.7 million barrels last week (ended 27 Nov). 

However, API reported a 4 million barrel increase in U.S. commercial crude oil last week (ended 27 Nov).

 

The U.S. Treasury Secretary and the President of the U.S. House of Representatives in the process of considering the issuance of the U.S. economic stimulus amount USD908.0bn according to the proposal of the Senate to remedy people and businesses affected by the COVID-19 outbreak so the Market Consensus expects to see Congress release a new round of stimulus measures. 

Moreover, the Federal Reserve Board (FRB) is also approved by the Treasury which has announced an extension of special liquidity measures for another 3 months from the original ending 31 Dec 20 to the end of 31 Mar 20 to support the economic recovery.

 

Technical View – Today, AWS expects the SET Index to move between 1,405-1,437 points. The recommended stocks are EPG, BGC, TISCO, M and CK.

 

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