Daily Strategy for Investors on December 4, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 4, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expected the SET Index today (4 Dec) to move in a range of 1,418-1,450 points. AWS expected the SET today to move in the positive area. However, the rise was quite limited from selling pressure to take profit before entering the long weekend. 

Next week (7-11 Dec), there will be only two business days (8-9 Dec), the key factor is the capital that will flow into the country. It was also boosted by progress on the COVID-19 vaccine and a 2-month rebound in consumer confidence index, including the investor confidence index that increased the highest in 2 years. 

AWS maintained its investment strategy as before. For investors who have held 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 speculation only.

 

Moderna American COVID-19 vaccine developer prepares to bring the COVID-19 vaccine developed by the company to apply for emergency use to the Singapore Health Authority which, if all processes go well, Singapore may have the Covid-19 vaccine as an emergency as early as Dec 2020. 

On 30 Nov 2020, Modernna reported the test results of the Covid-19 vaccine to be 94.1% effective against COVID-19 without any dangerous side effects and it is highly effective against Covid-19 in patients with severe symptoms. 

This is another positive factor in the progression of the Covid-19 vaccine, which will make the economy more resilient.

 

The Federation of Thai Capital Market Organizations (FETCO) reports investor confidence index in the next three months at 161.41, the highest point in the two-year period and increased 161% from the previous month at 61.27 points, driven by 1) expectations of capital inflow, 2) the recovery of the domestic economy, 3) Federal Reserve monetary policy (Fed) and 4) the success of the Covid-19 vaccine. 

However, there are still pressures from 1) the political situation in the country, 2) the economic recession, and 3) the situation of international conflicts with anticipation. The SET Index will rise above 1,580 points ahead of the Covid-19 crisis in 2021. 

AWS viewed it as a positive factor for the SET Index investment climate, especially tourism stocks such as AOT, MINT, ERW, AAV and BA.

 

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