Daily Strategy for Investors on January 20, 2021

Asia Wealth Securities (AWS) released an analysis for the trading session on January 20, 2021 indicating the essential events in the stock market as follows: 

 

Investment Ideas:

Today’s investment overview – AWS expects the SET today (20 Jan) to move within the range 1,510-1,539 points. Positive factors from the U.S. stimulus package expectation makes the market to weight back on risky assets. 

This is reflected by the recovery of crude oil prices. This leads AWS to recommending stocks in the energy and petrochemical sector in a speculative manner, choosing PTTEP, PTT and PTTGC as the top picks. 

Issues in the U.S. to follow are the inauguration ceremony of Joe Biden’s new president today (20 Jan) U.S. time, including reporting the banking sector performance and the ECB and BOJ meeting (21 Jan). 

AWS maintains the same investment strategy, recommending selling and taking profit at full value or exceed the fundamental value while new investment round for short-term investors, focus on speculation. While the medium to long-term investors, waiting accumulate as the SET falls 1,490-1,510 points in positive stocks following our Core Investment.

 

A positive sentiment on the overall investment, especially increasing the proportion of investment in risky assets after the Secretary of the U.S. Janet Yellen calls for Congress to accelerate the approval of economic stimulus measures in the amount of USD1.9tn presented by the President of the U.S. Joe Biden along with calling on members of Congress to push for further stimulus measures. 

Biden announced a USD1.9tn stimulus package under the name “American Rescue Plan”. The measure includes (1) an increase in the minimum wage from USD7.25 per hour to USD15 per hour (2) an increase in cash checks to Americans to USD2,000 each (originally USD600 per person). People) and (3) increased the aid limit to USD400 per week. The project will be extended until the end of Sep 2021.

 

The confidence in the U.S. economic stimulus measures build confidence in the recovery of the overall economy and it weighs more than the international Energy Agency (IEA) report, which cut its 2021 global crude demand forecast by 280,000 barrels per day so that in 2021, will see crude oil demand growth of 5.5 million bpd so the positive sentiment has once again bolstered its energy and petrochemical stocks. 

Investment Strategy, AWS recommends “speculation” by choosing PTTEP (Trading TP Bt118.0), PTT (Trading, TP Bt45.0) and PTTGC (Buy, TP71.0) as the top stocks.

 

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