Daily Strategy for Investors on December 14, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 14, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET this week (14-18 Dec) to move in the range 1,454-1,540 points, hoping the SET to test 1,500 points this week after the end of last week, the SET had a chance to test 1,500 points, despite the weakening foreign trading at the end of the week from the latest (9 Dec), foreign sold Bt2.5bn which was driven by the same positive factors while the risk is only a domestic factor that has begun to raise concerns about the second wave of COVID-19 situation after the increasing number of daily infections from the case of labor smuggling into the country via natural channels. 

In addition, the SET rose 24% in six weeks, causing concerns over periodic profit-taking. 

However, progress from the FDA approved the use of the vaccine in an emergency use, reducing worry about revert to lockdown measures which were positive for the price of crude oil, causing AWS to continue to recommend investing in a speculative manner, recommend energy stocks in AWS Core Investment: Theme Global play portfolio, while AWS investment strategy remains only speculative.

 

Dubai crude 4Q20QTD averaged USD43.5 per barrel, up 2.5%QoQ, with oil prices recovering rapidly over the past six weeks. Recently, crude oil prices rose 26% from the end of 3Q20, partly due to the progress of the COVID-19 vaccine. 

However, energy stocks benefiting from the rebound in crude oil increased in the same direction. Although AWS believes that in the short term, crude oil prices will still have a chance to improve from confidence in the overall economy and an increase in oil demand. But with limited upside in energy stocks, suggesting only speculation.

 

Technical View – Today, AWS expects the SET Index to move between 1,473-1,503 points. The recommended stocks are BEM, ESSO, BAFS, GULF and STARK

 

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) Stocks which expected that will have the outstanding performance in 4Q20 (invest 1-2 months) – SAWAD, GULF, SPALI, ORI, WHA and STA

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

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