Daily Strategy for Investors on January 13, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 13, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (13 Jan) to move in the range of 1,519-1,555 points. AWS expects the market to remain volatile in the sideway to sideway up, with positive factors supporting buying stocks in energy and petrochemicals since the price of crude oil continued to increase after the decrease in oversupply problem, including the expectation of a new round of stimulus measures in the U.S. that will stimulate the overall economy. 

For investment strategy, AWS also recommends selling and taking profit at full value or exceed the fundamental value while new investment round, recommend investing in positive stocks based on AWS Core Investment.

 

Oil markets were also boosted by Joe Biden’s administration to release massive stimulus measures worth trillions of dollars (by 14 Jan) prior to the inauguration of the president on 20 Jan. Crude oil reserves must also be monitored from the U.S. Energy Information Administration (EIA) today (13 Jan). 

Market Consensus expected a 2.7mn barrel drop in the U.S. crude reserves last week (ending 8 Jan), which will be the fifth consecutive week of decline. AWS maintains a positive view on crude oil prices as the overall economic recovery is expected to support crude oil demand and an easing of oil oversupply.

 

The Prime Minister announced after the Cabinet meeting (Cabinet) yesterday (12 Jan) approved remedial measures and take care of those affected by the new coronavirus outbreak several measures, including (1) Reduce electricity and water bills (billing cycle Feb- Mar). 

(2) Increase the speed of the Internet for supporting Work From Home. 

(3) A new round of half-time projects which a new round of registration of 1 million rights can be started from the end of Jan 2021. 

(4) Reduce the burden of public expenses by remedies Covering all professional groups Informal labor agricultural and independent occupation, in the amount of Bt3,500 for 2 months (Ministry of Finance will propose a cabinet for consideration next week). 

(5) Measures to help entrepreneurs and the general public which the government sector supports low-interest to enhance liquidity in the amount of Bt200.0bn and the Government Savings Bank Offer credit line Bt10,000-15,000 with interest rate at 0.1%-0.35%.

(6) Providing more COVID-19 prevention equipment, especially in vulnerable and low-income groups.

 

Cabinet approved the exemption of personal income tax for grants or benefits that people receive from government measures or programs because of the treatment and rehabilitation of the effects of COVID-19 infestation, a total of 4 projects which are “We do not leave each other”, “We travel together”, “Half Half” and “Kamlangjai”.

 

Core Investment

1) Global Play (Trading within 1 month) – PTT, PTTEP, TOP, PTTGC and SCC

2) Green energy stocks (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG, EA and ACE

3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – BBL, KKP, BEM, CPF, TU, M, OSP, CPALL, HMPRO, CRC and CHG

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

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

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