Daily Strategy for Investors on January 15, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 15, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (15 Jan) to move in a range of 1,521-1,547 points. AWS expects the SET Index to remain volatile in the sideway due to the COVID-19 situation around the world which the number of infected continues to increase, together with the economic stimulus package of Biden are not the factors supporting investment. 

However, the SET has limited downside after the recovery of crude oil prices encourages investment in energy stocks again. 

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.

 

Joe Biden who will be the President of the U.S. announced the USD1.9tn for economic stimulus package (American Rescue Plan) with the goal of helping the household sector and businesses to be able to cope with the spread of the COVID-19 virus. 

From this point, AWS looks positive on the overall investment. Even the U.S. stock market will not follow much positive feedback due to the amount of economic stimulus measures which it did not go beyond the framework that Market consensus had previously expected. 

While the focus of the stimulus is to (1) Provide assistance to the U.S. citizens of approximately USD2,000 per person (2) Increase the weekly unemployment benefit to USD400 by extending the assistance period until the end of Sep 2021 (3) Financial assistance to schools and educational institutions totaled USD130bn and (4) a minimum wage hike from USD7.25 per hour to USD15 per hour.

 

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