Daily Strategy for Investors on December 24, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on December 24, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (24 Dec) to move in the range of 1,390-1,449 points. The SET Index is still volatile in the sideway to sideway up. The issue needs to follow is the CCSA meeting this morning (24 Dec), an interesting issue is COVID-19 control measures. 

However, the COVID-19 situation in the country where signals are starting to sound good from the number of infected people increased at a reduced rate, including foreign factors, including the Brexit situation that eases anxiety and crude oil prices recovering in the short-term as supporting factors. 

AWS maintains a cautious investment strategy, recommended to take profit. While new investment rounds, recommend only speculation.

 

Following this morning’s meeting, an interesting issue lies in the COVID-19 control measures. Initially, AWS assessed two approaches (1) in the event of a nationwide level of control, and this will have a negative impact on the market. AWS expects the SET to decline which the support levels are at 1,345-1,375 points. 

(2) Where the control measures are effective only in vulnerable areas, especially in Samut Sakhon and some provinces with the epidemic, will have little impact on the SET which AWS expects the SET to remain active in the sideway frame.

 

Crude oil hiked after the U.S. Energy Information Administration (EIA) reported a 562,000 barrel drop in the U.S. crude reserves last week. The EIA report also indicated 1.1 million barrels of gasoline reserves and refined oil volumes (Including heating oil and diesel oil) decreased 2.3 million barrels, reflecting the recovery of oil demand. While the price of energy stocks began to decline in the past, there has been enough upside for new investment rounds causing us to recommend only speculation.

 

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