Daily Strategy for Investors on December 16, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 16, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (16 Dec) to continue to fluctuate in a sideway to sideway up, as the FDA prepares further approval of Modena’s COVID-19 vaccine. It is a positive sentiment supporting investment. 

AWS expects to see buying back for key stocks such as the energy and banking sectors today due to the specific factors of the business sector that are supporting them. However, the limited upside of the business group makes AWS still weigh only speculation. 

For investment strategy, AWS remains cautious about short-term fluctuations, recommending to sell some shares or full value while new investment rounds, recommend only speculation.

 

The European Central Bank (ECB) allowed commercial banks to pay dividends not exceed 15% of retained earnings between 2019-2020 or not more than 0.2% of risky assets held by each bank after the ECB enacted a measure to prohibit dividend payments from March 2020 to maintain financial stability under the circumstances of COVID-19 which negatively affects the debt servicing ability of businesses. 

It is estimated that it could be worth as much as EUR1.4tn, with the ECB estimating that commercial banks have sufficient cash flow to operate but it still has to be presented with the ECB’s plan to authorize it before paying the dividend. While on the overall economy, the ECB estimates that the European economy will resume growth of 3.9% in 2021 and expand at 4.2% in 2022. 

From this point, AWS viewed this issue as a positive sentiment to the Thai banking sector investment.

 

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